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Does informality help entrepreneurs achieve firm growth? evidence from a post-conflict economy
This article evaluates the impact of starting-up unregistered and operating informally on small firm growth in Kosovo, the country with the highest levels of informality in Western Balkans. The study uses mixed research methods as an inquiry to combining both qualitative and quantitative forms. Reporting data from 487 business owners extracted from a 2017 nationally representative survey of 8,533 households in Kosovo, 47.7 percent had startedup unregistered and were operating informally at the time of the survey. Using an instrumental variable (IV) estimation with a binary endogenous regressor to estimate the impact of informality (a treatment group) on small firm growth (control group), while controlling for other entrepreneur and firm determinants, a strong positive effect of the informality on firm growth is identified. Entrepreneurs operating informally had an 11.6 percentage points higher probability of achieving their firm growth objectives compared with entrepreneurs operating formally. Yet, the qualitative interviews revealed that growth objectives of small firms were limited, so the unregistered firms outperformed registered firms only under the modest growth objectives. Taking into account the limitations of the study, the implications for theory and policy are proposed to tackle the informality such as incentives of government small business support programs.
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Access to In-Vehicle Data by Third-Party Service Providers: Is there a Market Failure and, if so, How Should it be Addressed?
In: TILEC Discussion Paper No. DP2020-041
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An Experiment on Partial Cross-Ownership in Oligopolistic Markets
In: International Journal of Industrial Organization, Band 78
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Fast Fashion: Theory and Evidence from Portuguese Textile and Clothing Firms
In: CESifo Working Paper No. 8125
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On the Profitability of Cross-Ownership in Cournot Oligopolies: Stock Sizes Matter
In: CESifo Working Paper No. 8503
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Online Platforms and Digital Advertising Market Study: Observations on the Statement of Scope
In: TILEC Discussion Paper No. DP2020-043
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Access for All v. License to All: A Response to Richard Vary
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Industrialisation and the Big Push in a Global Economy
In: CEGE Discussion Papers Number 388 – February 2020
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Restrictions by Object after Generics and Budapest Bank: A Road Map
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Collective Bargaining and Unpaid Care As Social Security Risk – An EU Perspective
In: International Journal of Comparative Labour Law and Industrial Relations, Forthcoming
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Speech, Drugs, and Patent Infringement
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Deception by Design
In: Loyola Law School, Los Angeles Legal Studies Research Paper No. 2020-25
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Double Marginalization and the Paths of Natural Gas Gathering Pipelines
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