SME Registration Evidence from a Randomized Controlled Trial in Bangladesh [electronic resource] / Giacomo De Giorgi
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TextPublication details: Washington, D.C., The World Bank, 2013Description: 1 online resource (14 p.)Subject(s): Access to Finance | Business registration | E-Business | Economic Theory & Research | Information campaign | International Economics & Trade | Macroeconomics and Economic Growth | Microfinance | Small and medium enterprises | Tax authorities | Tax registration status | Technology IndustryAdditional physical formats: De Giorgi, Giacomo: SME Registration Evidence from a Randomized Controlled Trial in Bangladesh.Online resources: Click here to access online Abstract: Informality is pervasive in developing countries. In Bangladesh, the majority of firms are informal and as such they might not have access to prime markets, while lowering the tax base. The authors implemented an information campaign on registration, including both the step-by-step procedures and the potential benefits from registration. They find that the treatment made firms more aware of the procedures, but had no impact on actual registration. The results point toward potentially low benefits and high indirect costs of registration as the main barriers to formality (e.g. access to markets, taxation, labor and product regulations).
Informality is pervasive in developing countries. In Bangladesh, the majority of firms are informal and as such they might not have access to prime markets, while lowering the tax base. The authors implemented an information campaign on registration, including both the step-by-step procedures and the potential benefits from registration. They find that the treatment made firms more aware of the procedures, but had no impact on actual registration. The results point toward potentially low benefits and high indirect costs of registration as the main barriers to formality (e.g. access to markets, taxation, labor and product regulations).
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