Differences in efficiency between Formal and Informal micro-firms in Mexico
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| Natura: | Artículo científico |
| Lingua: | en |
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Universidad Autónoma Metropolitana
2022
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| _version_ | 1876422881601126400 |
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| author | Antonio Baez Morales |
| author_facet | Antonio Baez Morales |
| contents | Differences in efficiency between Formal and Informal micro-firms in Mexico Antonio Baez Morales Economía y Finanzas D00 D22 D24 eficiencia Informalidad The economic role of micro firms is still the subject of much discussion and debate. While these firms can be seen as potential growth driver, a relatively high share of micro firms can also be a sign of an underdeveloped productive system. This research separates formal and informal micro firms to test whether there are efficiency differences between them, and to explain these differences. One of the novelties of the study is the use of the Oaxaca-Blinder decomposition method. Micro firms in Mexico are taken as a case study, with the ENAMIN, for 2008, 2010 and 2012, used to carry out the analysis. The empirical evidence suggests that output differences can be explained by endowment characteristics, while efficiency differences are explained by endowment returns. The main variables to explain the gap between the groups are the owner’s level of education, the firm’s age, the owner’s motivations, and financing. 2022 artículo científico 0185-3937 https://www.redalyc.org/articulo.oa?id=41373203011 https://www.redalyc.org/journal/413/41373203011/ https://www.redalyc.org/journal/413/41373203011/html/ https://www.redalyc.org/journal/413/41373203011/41373203011.epub https://www.redalyc.org/journal/413/41373203011/movil 10.24275/uam/azc/dcsh/ae/2022v37n96/Baez en http://www.redalyc.org/revista.oa?id=413 Análisis Económico application/pdf Universidad Autónoma Metropolitana Análisis Económico (México) Num.96 Vol.XXXVII |
| format | Artículo científico |
| id | redalyc_41373203011 |
| institution | Redalyc |
| language | en |
| publishDate | 2022 |
| publisher | Universidad Autónoma Metropolitana |
| spellingShingle | Differences in efficiency between Formal and Informal micro-firms in Mexico Antonio Baez Morales Economía y Finanzas D00 D22 D24 eficiencia Informalidad Differences in efficiency between Formal and Informal micro-firms in Mexico Antonio Baez Morales Economía y Finanzas D00 D22 D24 eficiencia Informalidad The economic role of micro firms is still the subject of much discussion and debate. While these firms can be seen as potential growth driver, a relatively high share of micro firms can also be a sign of an underdeveloped productive system. This research separates formal and informal micro firms to test whether there are efficiency differences between them, and to explain these differences. One of the novelties of the study is the use of the Oaxaca-Blinder decomposition method. Micro firms in Mexico are taken as a case study, with the ENAMIN, for 2008, 2010 and 2012, used to carry out the analysis. The empirical evidence suggests that output differences can be explained by endowment characteristics, while efficiency differences are explained by endowment returns. The main variables to explain the gap between the groups are the owner’s level of education, the firm’s age, the owner’s motivations, and financing. 2022 artículo científico 0185-3937 https://www.redalyc.org/articulo.oa?id=41373203011 https://www.redalyc.org/journal/413/41373203011/ https://www.redalyc.org/journal/413/41373203011/html/ https://www.redalyc.org/journal/413/41373203011/41373203011.epub https://www.redalyc.org/journal/413/41373203011/movil 10.24275/uam/azc/dcsh/ae/2022v37n96/Baez en http://www.redalyc.org/revista.oa?id=413 Análisis Económico application/pdf Universidad Autónoma Metropolitana Análisis Económico (México) Num.96 Vol.XXXVII |
| title | Differences in efficiency between Formal and Informal micro-firms in Mexico |
| topic | Economía y Finanzas D00 D22 D24 eficiencia Informalidad |
| url | https://www.redalyc.org/articulo.oa?id=41373203011 https://www.redalyc.org/journal/413/41373203011/ https://www.redalyc.org/journal/413/41373203011/html/ https://www.redalyc.org/journal/413/41373203011/41373203011.epub https://www.redalyc.org/journal/413/41373203011/movil |