A Legacy from the Informal Economy

On the Relationship between Experimentation and Exporting among African SMEs

Publikation: KonferencebidragPaperForskningpeer review

Resumé

We explore whether firms that started their operations in the informal economy are more likely to start exporting than firms that started out as formally registered. The informal economy covers the actions of economic agents that fail to adhere to the established institutional rules or are denied their protection. We utilize this context to argue that informal firms have a unique opportunity to experiment with different products and markets prior to formal registration. This, we hypothesize, increases their propensity to export after formal registration. At the same time, we also hypothesize that the relationship between firms’ informal legacy and exporting propensity is weaker in countries where formal institutions are stronger. Using a comprehensive sample of 8,933 African SMEs, we find support for our hypotheses.
OriginalsprogEngelsk
Publikationsdato2019
Antal sider38
StatusUdgivet - 2019
BegivenhedDRUID19 Conference - Copenhagen Business School, Frederiksberg, Danmark
Varighed: 19 jun. 201921 jun. 2019
Konferencens nummer: 41
https://conference.druid.dk/Druid/?confId=59

Konference

KonferenceDRUID19 Conference
Nummer41
LokationCopenhagen Business School
LandDanmark
ByFrederiksberg
Periode19/06/201921/06/2019
Internetadresse

Emneord

  • Exporting
  • Informal economy
  • Experimental knowledge
  • Institutional trust
  • African SMEs

Citer dette

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abstract = "We explore whether firms that started their operations in the informal economy are more likely to start exporting than firms that started out as formally registered. The informal economy covers the actions of economic agents that fail to adhere to the established institutional rules or are denied their protection. We utilize this context to argue that informal firms have a unique opportunity to experiment with different products and markets prior to formal registration. This, we hypothesize, increases their propensity to export after formal registration. At the same time, we also hypothesize that the relationship between firms’ informal legacy and exporting propensity is weaker in countries where formal institutions are stronger. Using a comprehensive sample of 8,933 African SMEs, we find support for our hypotheses.",
keywords = "Exporting, Informal economy, Experimental knowledge, Institutional trust, African SMEs, Exporting, Informal economy, Experimental knowledge, Institutional trust, African SMEs",
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Witte, C & Møller Larsen, M 2019, 'A Legacy from the Informal Economy: On the Relationship between Experimentation and Exporting among African SMEs' Paper fremlagt ved DRUID19 Conference, Frederiksberg, Danmark, 19/06/2019 - 21/06/2019, .

A Legacy from the Informal Economy : On the Relationship between Experimentation and Exporting among African SMEs. / Witte, Caroline ; Møller Larsen, Marcus.

2019. Afhandling præsenteret på DRUID19 Conference, Frederiksberg, Danmark.

Publikation: KonferencebidragPaperForskningpeer review

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T2 - On the Relationship between Experimentation and Exporting among African SMEs

AU - Witte, Caroline

AU - Møller Larsen, Marcus

PY - 2019

Y1 - 2019

N2 - We explore whether firms that started their operations in the informal economy are more likely to start exporting than firms that started out as formally registered. The informal economy covers the actions of economic agents that fail to adhere to the established institutional rules or are denied their protection. We utilize this context to argue that informal firms have a unique opportunity to experiment with different products and markets prior to formal registration. This, we hypothesize, increases their propensity to export after formal registration. At the same time, we also hypothesize that the relationship between firms’ informal legacy and exporting propensity is weaker in countries where formal institutions are stronger. Using a comprehensive sample of 8,933 African SMEs, we find support for our hypotheses.

AB - We explore whether firms that started their operations in the informal economy are more likely to start exporting than firms that started out as formally registered. The informal economy covers the actions of economic agents that fail to adhere to the established institutional rules or are denied their protection. We utilize this context to argue that informal firms have a unique opportunity to experiment with different products and markets prior to formal registration. This, we hypothesize, increases their propensity to export after formal registration. At the same time, we also hypothesize that the relationship between firms’ informal legacy and exporting propensity is weaker in countries where formal institutions are stronger. Using a comprehensive sample of 8,933 African SMEs, we find support for our hypotheses.

KW - Exporting

KW - Informal economy

KW - Experimental knowledge

KW - Institutional trust

KW - African SMEs

KW - Exporting

KW - Informal economy

KW - Experimental knowledge

KW - Institutional trust

KW - African SMEs

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