Comparing estimated and self-reported mark-ups for formal and informal firms in an emerging market context

John Rand

No wp-2017-160, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Using a 10-year panel survey covering Vietnamese manufacturing firms, we consistently obtain firm-specific mark-up estimates and relate these to firm-level formality. The average firm-specific mark-up using a trans-log revenue production function specification is estimated to be 1,445, with substantial underlying variation across firm size, location, sector, and ownership form. Zooming in on firm-level registration, we find a formality premium of 16 per cent, even when controlling for selection into formality.

Keywords: Firm productivity; Formality; Viet Nam (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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