2021
DOI: 10.1007/s11187-021-00548-8
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Formal and informal entrepreneurship: a cross-country policy perspective

Abstract: This paper distinguishes between formal and informal entrepreneurship. It theorises that each are influenced by very different combinations of macro-economic factors and strongly moderated by country income levels. Empirically, we show the ease of starting a business and high-quality governance, exert a powerful influence on formal, but not informal entrepreneurship. The latter is influenced by self-employment rates in low-income countries and by female labour force participation in high-income countries. Poli… Show more

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Cited by 18 publications
(10 citation statements)
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References 69 publications
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“…A similar trend can also be found in the field of the informal sector, where much research relies on secondary data (e.g. Laing et al. , 2021; Tanaka and Hashiguchi, 2020).…”
Section: Methodssupporting
confidence: 64%
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“…A similar trend can also be found in the field of the informal sector, where much research relies on secondary data (e.g. Laing et al. , 2021; Tanaka and Hashiguchi, 2020).…”
Section: Methodssupporting
confidence: 64%
“…In Ghana, similar to low-income countries, self-employment rates influence informal entrepreneurship (Dana, 2007; Laing et al. , 2021).…”
Section: Literature Review and Hypotheses Developmentmentioning
confidence: 99%
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“…3 In this case, an excessive governmental support (e.g., infrastructure spending, welfare programs, tax incentives) and /or additional improvement on the perception of corruption may bring a conflict i.e., a trade-off between 'too many' entrepreneurs. However, as explained earlier, this paper does not deal with the opportunity-necessity motive of being a formal/informal entrepreneur as the combination of macro-economic factors are intimately related with country income levels (for a more recent discussion of the main drawbacks of the formal/informal entrepreneurship definitions see Laing et al 2021).…”
Section: Literature Reviewmentioning
confidence: 99%
“…Neste caso, quanto maior for a população ativa, maior será o nível de empreendedorismo informal. Existem dois conjuntos de fatores diferentes aplicáveis para explicar as razões que levam os indivíduos a envolverem-se no empreendedorismo informal (Laing, 2021). Em primeiro lugar, o sector informal emerge das estratégias de sobrevivência dos indivíduos e das suas famílias dentro de um ambiente económico no qual existem apenas limitações às oportunidades de rendimento (Portes & Böröcz, 1988).…”
Section: Empreendedorismo Informal -Determinantes Sociodemográficos C...unclassified