A Framework for Thinking About Enterprise Formalization Policies in Developing Countries

17 Pages Posted: 20 Apr 2016

See all articles by Thomas Kenyon

Thomas Kenyon

United Nations Industrial Development Organization

Date Written: May 1, 2007

Abstract

What policies encourage firms to become formal? The standard approach emphasizes reducing the costs of compliance with government regulation. This is unlikely to be sufficient. Instead we need to understand compliance as a function not only of firm-level costs and benefits but also in terms of the interaction between the firm and its competitors and between the firm and the state. This paper emphasizes the coordination and credibility issues involved in promoting formalization and discusses possible institutional solutions, among them business associations that make the benefits of membership dependent on compliance, information sharing arrangements among government agencies and improvements in the quality of public management.

Keywords: Microfinance, Small Scale Enterprise, Public Sector Economics & Finance, Economic Theory & Research, Public Sector Regulation

Suggested Citation

Kenyon, Thomas, A Framework for Thinking About Enterprise Formalization Policies in Developing Countries (May 1, 2007). World Bank Policy Research Working Paper No. 4235. Available at SSRN: https://ssrn.com/abstract=988845

Thomas Kenyon (Contact Author)

United Nations Industrial Development Organization ( email )

Vienna International Centre
Vienna, DC
Austria

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
272
Abstract Views
1,289
rank
117,886
PlumX Metrics