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Firm Dynamics and Institutional Participation

A Case Study on Informality of Micro Enterprises in Peru

Bibliographic Data

ID4362591
AuthorsAnnette E Jäckle, Annette Jäckle (0000-0003-2150-1413, University of Essex), Carmen A Li (University of Essex)
Year2006
Volume54
Issue3
Pages557-578
Publication date2006-04-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic Development and Cultural Change (JOURNAL)
Journal identifiersISSN: 0013-0079 • E-ISSN: 1539-2988
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/500027
OpenAlexW1973512570
LanguageEN
Citations received2
References cited15

Using panel data on micro enterprises from Peru we find evidence suggesting that firm dynamics explain “formality,” where formality is recast as the firm’s decision to participate in societal institutions. The results suggest that differences in unobservable factors, such as entrepreneurial ability, contribute largely to differences in growth rates, survival chances, and societal participation. After controlling for such unobserved heterogeneity, we find that the probability of participation increases with firm size but not with years in business. Changes in participation status are sensitive to the initial size and growth trajectory of the firm

Demographic economics · Dynamics (music) · Econometrics · Economics · Entrepreneurship · Formality · Panel data · Political science · Unobservable · Corporate Finance and Governance · Entrepreneurship Studies and Influences · Finance · Firm Innovation and Growth

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Unique citing works2
Citations per year0,33
Citation span2020 - 2021 (2)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 2

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