Artikel

Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector

The predominant type of firms in developing countries is small family firms and the self-employed in the informal sector. Very few family firms make the transition to larger firms employing non-family labour. In this paper, we examine the reasons for the low presence of firms employing non-family labour in the informal sector, using a firm-level data set drawn from nationally representative repeated cross-sectional surveys of the Indian informal manufacturing sector. We find that the key constraint to firm transition is firm capabilities, followed by the level of urbanisation, access to electricity and roads, and human capital, with financial constraints playing a lesser role.

Language
Englisch

Bibliographic citation
Journal: IZA Journal of Labor & Development ; ISSN: 2193-9020 ; Volume: 5 ; Year: 2016 ; Issue: 10 ; Pages: 1-20 ; Heidelberg: Springer

Classification
Wirtschaft
Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
Firm Performance: Size, Diversification, and Scope
Firm Behavior: Empirical Analysis
Subject
Informal sector
Firm transition
Firm growth
India

Event
Geistige Schöpfung
(who)
Raj, Rajesh SN
Sen, Kunal
Event
Veröffentlichung
(who)
Springer
(where)
Heidelberg
(when)
2016

DOI
doi:10.1186/s40175-016-0056-8
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Raj, Rajesh SN
  • Sen, Kunal
  • Springer

Time of origin

  • 2016

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