Impact of sourcing from the informal economy on the export likelihood and performance of emerging economy firms

Navigating China’s feudal governance structures: some guidelines for foreign enterprises

Octavio Escobar, Olivier Lamotte, Ana Colovic and Pierre-Xavier Meschi

Industrial and Corporate Change, 2022, vol. 31, issue 3, 610-627

Abstract: Building on the institutional economics perspective, we study how local firms in an emerging economy exploit institutional voids by sourcing inputs from industries with a large informal economy. We argue that this allows them to build a cost-related competitive advantage and leverage it both to export and to enhance export performance. The empirical study uses a unique dataset compiled by the Mexican authorities covering manufacturing plants between 2005 and 2012. Our results indicate that firms operating in industries that procure from industries with an extensive informal economy are more likely to export and to have better export performance.

Keywords: F14 (empirical studies of trade); L200 (firm objectives; organization and behavior: general); O17 (formal and informal sectors); F60 (economic impacts of globalization: general) (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtab068 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Impact of sourcing from the informal economy on the export likelihood and performance of emerging economy firms (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:indcch:v:31:y:2022:i:3:p:610-627.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().