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Articles 1 - 7 of 7

Full-Text Articles in Social and Behavioral Sciences

Labor Productivity In The Informal Sector: Necessity Vs. Opportunity Firms, Mohammad Amin Dec 2009

Labor Productivity In The Informal Sector: Necessity Vs. Opportunity Firms, Mohammad Amin

Mohammad Amin

Differences between opportunity and necessity firms within the informal sector have long been debated. This paper revisits this debate using a new dataset of informal firms in three African countries. Focusing on average productivity of labor, a measure of firm efficiency, we find that it is much higher for opportunity compared with necessity firms. However, this difference between necessity and opportunity firms holds only within the sample of manufacturing firms. For firms in the service sector, there is no such difference.

[Data and Stata do files included]


Obstacles To Registering: Necessity Vs. Opportunity Entrepreneurs, Mohammad Amin Dec 2009

Obstacles To Registering: Necessity Vs. Opportunity Entrepreneurs, Mohammad Amin

Mohammad Amin

Using a new dataset on informal or unregistered firms in three African countries, this paper identifies the type of firms or entrepreneurs that experience greater obstacles to registering. We find important differences between necessity and opportunity entrepreneurs. Averaged over six different obstacles, the severity of obstacles to registering is much higher for necessity compared with opportunity entrepreneurs. This finding appears to be driven by important obstacles including taxes that registered businesses have to pay, registration fees and information required to complete registration procedures. We argue that our results have important policy implications.

[Data and Stata do files included]


Who Suffers More From Crime?, Mohammad Amin Nov 2009

Who Suffers More From Crime?, Mohammad Amin

Mohammad Amin

Existing studies aimed at identifying individuals or economic agents that suffer more from crime than others are based on the incidence of crime or the proportion of agents within a group that experience one or more incident of crime during a given period of time. This paper shows that studies based solely on the incidence of crime may provide a misleading picture as to who suffers more from crime. In a sample of about 6,000 manufacturing firms in 14 Latin American countries, we find that large firms are more likely to experience an incident of crime than the small ...


How Different Are Service And Manufacturing Firms In The Informal Sector? (Short Note), Mohammad Amin Oct 2009

How Different Are Service And Manufacturing Firms In The Informal Sector? (Short Note), Mohammad Amin

Mohammad Amin

A comparison of service and manufacturing firms in the informal sector shows that service firms are larger in terms of total sales and also generate more output per worker. They rely less on physical infrastructure and machines but more on human capital. Service firms also appear to be better integrated with the financial system with access to finance being less of an obstacle to their business. Some of the commonly held reasons for not registering such as taxes that registered businesses have to pay and benefits from registering such as better access to government programs appear to be less important ...


Consumer Behavior And Competition In Retailing (A Short Note), Mohammad Amin Apr 2009

Consumer Behavior And Competition In Retailing (A Short Note), Mohammad Amin

Mohammad Amin

Drawing on a small but growing literature, this note argues that consumer behavior may be as important as firm behavior for the level of competition in consumer industries such as retailing. We use data on 1.948 retail stores in India and contribute to the literature in three ways. First, we find that the number of non-workers in the household, a proxy for time cost of shopping, has a large effect on competition. Moving from the city with the least to the most number of non-workers increases competition by 84% of its mean level. Second, as suggested in the literature ...


Natural Resources And Reforms, Mohammad Amin, Simeon Djankov Mar 2009

Natural Resources And Reforms, Mohammad Amin, Simeon Djankov

Mohammad Amin

We use a sample of 133 countries to investigate the link between the abundance of natural resources and micro-economic reforms. Previous studies suggest that natural resource abundance gives rise to governments that are less accountable to the public, states that are oligarchic, and that it leads to the erosion of social capital. These factors are likely to hamper economic reforms. We test this hypothesis using data on micro-economic reforms from the World Bank’s Doing Business database. The results provide a robust support for the “resource curse” view: a move from the 75th percentile to the 25th percentile on resource ...


Democracy And Reforms, Mohammad Amin, Simeon Djankov Jan 2009

Democracy And Reforms, Mohammad Amin, Simeon Djankov

Mohammad Amin

We use a sample of 147 countries to investigate the link between democracy and reforms. Democracy may be conducive to reform, because politicians have the incentive to embrace growth-enhancing reforms to win elections. On the other hand, authoritarian regimes do not have to worry as much about public opinion and may undertake reforms that are painful in the short run but bring future prosperity. We test these hypotheses, using data on micro-economic reforms from the World Bank’s Doing Business database. These data do not suffer the endogeneity issues associated with other datasets on changes in economic institutions. The results ...