Economic Growth and Poverty: Does Formalisation of Informal Enterprises Matter?

The informal sector (IS) in developing countries plays significant roles viz., the provision of employment, incomes and supplying ignored markets. However, the working and employment conditions in the sector are still poor. Thus, its expansion and changing structures have drawn the attention of scholars and international policy makers on factors hindering its formalisation. Among the addressed factors include high costs of formalisation and lack of incentives to operate in the formal sector. To overcome these factors, various approaches have been adopted by different stakeholders. The paper assesses these approaches, factors related to informality-formality trade-off and the question of formalisation as a solution for firms’ growth. Looking at the problems faced by informal enterprises and the literature addressing options to accelerate the formalisation of informal enterprises, the paper briefly summarises the weaknesses of these approaches.informal sector; small enterprises; formal and informal institutions; informality; poverty; economic growth

Economic Growth and Poverty: Does Formalisation of Informal Enterprises Matter?

The informal sector (IS) plays a significant role in developing countries viz. the provision of employment, income and supplying ignored markets. However, working and employment conditions within the sector are still poor. Its expansion and changing structures have thus drawn the attention of scholars and international policy makers to the factors hindering its formalisation. Among the factors addressed are the high costs of formalisation and the lack of incentives for operating in the formal sector. A variety of approaches have been adopted by different stakeholders to overcome these factors. This paper assesses these approaches along with the factors related to informality-formality trade-off and the issue of formalisation as a solution for firms’ growth. By focussing on the problems faced by informal enterprises and the literature which addresses the options for accelerating the formalisation of informal enterprises, the paper will briefly summarise the weaknesses of these approaches.Informal sector, small enterprises, formal and informal institution, cost of formalisation, informality, formality, poverty, economic growth

Business Environment and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda

Since the 1990s, studies utilizing descriptive statistics have documented factors in the business environment, which hinder the performance of Ugandan micro and small enterprises (MSEs). Based on secondary data, this paper assesses the trend of critical factors since 1994 to 2010. The paper also utilizes the primary data from MSEs to examine the effects of these factors on the growth potential of MSEs, while controlling for the owner’s and the firm’s attributes. Results from the trend analysis reveal that the business environment has been deteriorating over time. Results from the regression analyses reveal that MSEs’ growth potential is negatively associated with limited access to productive resources, high taxes and lack of market access

Formalisation of Informal Enterprises: Economic Growth and Poverty

Several studies have reported on factors that impede the formalisation of the informal sector emphasising the high costs of formalisation and the lack of incentives for operating in the formal sector.Various approaches have been adopted by stakeholders in order to overcome these problems and this paper aims to assess these approaches and the factors related to informality-formality trade-off as well as the matter of formalisation as a solution for firms’ growth. By deliberating over the problems faced by informal enterprises and the literature addressing the options for accelerating the formalisation of informal enterprises, the paper will briefly summarise the weaknesses of these approaches

How Global Governance Structures Shape Economic Growth and Poverty Reduction: The Case of Textile and Apparel Value Chain

Given the increasing disintegration of production and integration of trade, the industrial cluster literature’s view that localised market linkages are important in enhancing the growth of small enterprises seems insufficient as it ignores global linkages and fails to differentiate different categories of linkages. The global value chain (GVC) literature stresses the insertion of developing countries' producers in GVCs as a precondition for upgrading/growth. However, GVCs are differently organised due to, among others, different structures governing them. Hence, producers/economies integrated into GVCs are likely to attain different levels of economic upgrading/downgrading and decreased/increased poverty. Based on previous findings, this paper explores how the interactions between governance structures within and outside the global textile and apparel chain shape producers' growth and poverty reduction. The paper proposes options for producers to earn a relatively more return from the GVCs and attain sustainable poverty reduction strategies

Consistently Simulating a Wide Range of Atmospheric Scenarios for K2-18b with a Flexible Radiative Transfer Module

The atmospheres of small, potentially rocky exoplanets are expected to cover a diverse range in composition and mass. Studying such objects therefore requires flexible and wide-ranging modeling capabilities. We present in this work the essential development steps that lead to our flexible radiative transfer module, REDFOX, and validate REDFOX for the Solar system planets Earth, Venus and Mars, as well as for steam atmospheres. REDFOX is a k-distribution model using the correlated-k approach with random overlap method for the calculation of opacities used in the $\delta$-two-stream approximation for radiative transfer. Opacity contributions from Rayleigh scattering, UV / visible cross sections and continua can be added selectively. With the improved capabilities of our new model, we calculate various atmospheric scenarios for K2-18b, a super-Earth / sub-Neptune with $\sim$8 M$_\oplus$ orbiting in the temperate zone around an M-star, with recently observed H$_2$O spectral features in the infrared. We model Earth-like, Venus-like, as well as H$_2$-He primary atmospheres of different Solar metallicity and show resulting climates and spectral characteristics, compared to observed data. Our results suggest that K2-18b has an H$_2$-He atmosphere with limited amounts of H$_2$O and CH$_4$. Results do not support the possibility of K2-18b having a water reservoir directly exposed to the atmosphere, which would reduce atmospheric scale heights, hence too the amplitudes of spectral features inconsistent with the observations. We also performed tests for H$_2$-He atmospheres up to 50 times Solar metallicity, all compatible with the observations.Comment: 28 pages, 13 figures, accepted for publication in Ap

Economic Growth and Poverty: Does Formalisation of Informal Enterprises Matter?

The informal sector (IS) in developing countries plays significant roles viz., the provision of employment, incomes and supplying ignored markets. However, the working and employment conditions in the sector are still poor. Thus, its expansion and changing structures have drawn the attention of scholars and international policy makers on factors hindering its formalisation. Among the addressed factors include high costs of formalisation and lack of incentives to operate in the formal sector. To overcome these factors, various approaches have been adopted by different stakeholders. The paper assesses these approaches, factors related to informality-formality trade-off and the question of formalisation as a solution for firms’ growth. Looking at the problems faced by informal enterprises and the literature addressing options to accelerate the formalisation of informal enterprises, the paper briefly summarises the weaknesses of these approaches

Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions

We examine a crowdfunding platform that connects artists with funders. Although the Internet reduces many distance-related frictions, local and distant funders exhibit different funding patterns. Local funders appear less responsive to information about the cumulative funds raised by an artist. However, this distance effect appears to proxy for a social effect: it is largely explained by funders who likely have an offline social relationship with the artist (“friends and family”). Yet, this social effect does not persist past the first investment, suggesting that it may be driven by an activity like search but not monitoring. Thus, although the platform seems to diminish many distance-sensitive costs, it does not eliminate all of them. These findings provide a deeper understanding of the abilities and limitations of online markets to facilitate transactions and convey information between buyers and sellers with varying degrees of social connectedness