Informality and Firm Performance in Myanmar
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
Standard
Informality and Firm Performance in Myanmar. / Berkel, Hanna Mareen; Tarp, Finn.
I: The Journal of Development Studies, Bind 58, Nr. 7, 2022, s. 1363-1382.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
Harvard
APA
Vancouver
Author
Bibtex
}
RIS
TY - JOUR
T1 - Informality and Firm Performance in Myanmar
AU - Berkel, Hanna Mareen
AU - Tarp, Finn
PY - 2022
Y1 - 2022
N2 - Using a unique panel survey of enterprises, we examine the relationship between four categories of formalization and firm productivity. We carry out one- and two-step productivity estimations whose robustness we check with matching and doubly robust estimators. The only formalization category that appears to be significantly associated with productivity is tax formalization, i.e. a firm’s decision to pay taxes. This positive association only holds for firms that were already more productive and bigger before formalizing than other informal firms. The reason for the insignificance of the remaining three categories is likely to be the insignificant association between formalization and potential benefits of formalization, such as more access to credit, employees, and investments. High taxes and fees linked to formalization seem to outweigh the few to non-existent intermediate benefits of formalization.
AB - Using a unique panel survey of enterprises, we examine the relationship between four categories of formalization and firm productivity. We carry out one- and two-step productivity estimations whose robustness we check with matching and doubly robust estimators. The only formalization category that appears to be significantly associated with productivity is tax formalization, i.e. a firm’s decision to pay taxes. This positive association only holds for firms that were already more productive and bigger before formalizing than other informal firms. The reason for the insignificance of the remaining three categories is likely to be the insignificant association between formalization and potential benefits of formalization, such as more access to credit, employees, and investments. High taxes and fees linked to formalization seem to outweigh the few to non-existent intermediate benefits of formalization.
U2 - 10.1080/00220388.2022.2061849
DO - 10.1080/00220388.2022.2061849
M3 - Journal article
VL - 58
SP - 1363
EP - 1382
JO - Journal of Development Studies
JF - Journal of Development Studies
SN - 0022-0388
IS - 7
ER -
ID: 311609554