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dc.contributor.authorBirbuet, Juan Cristóbalen_US
dc.contributor.authorMachicado, Carlos Gustavoen_US
dc.date.accessioned2011-05-26T10:02:48Z-
dc.date.available2011-05-26T10:02:48Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/45692-
dc.description.abstractIn this case study performed on the industrial sub-sector of manufacture of leather shoes in Bolivia, we use the Hsieh and Klenow model (2008) to determine the differences between productivity of larger and formal companies and productivity of smaller and informal companies. Our results reveal that there are not many differences in terms of productivity among these types of companies. We think that informality is indeed the most important factor that contributes to this phenomenon. Apparently, the decrease in costs associated with informality compensates to some extent the economies of scale of formal companies with bigger dimensions and better technology. A notable fact in the shoe manufacturing industry is that it had experienced an atomization process in the last years. This trend is the consequence of a progressive creation of many small informal companies instead of the consolidation of this industry in medium and large formal companies. In a way, informality has contributed to this process. First, because it allows the survival of less productive companies that if they were not informal, they would have to bear costs that would not allow them to continue in business. Second, because informality creates strong incentives for employees to start their own business. On the other hand, many costs associated with formality discourage legally operating companies to employ more people, raise capital and growth.en_US
dc.language.isoengen_US
dc.publisherInst. for Advanced Development Studies La Pazen_US
dc.relation.ispartofseriesDevelopment Research Working Paper Series 2009/08en_US
dc.subject.ddc330en_US
dc.subject.stwLederverarbeitende Industrieen_US
dc.subject.stwSchuhindustrieen_US
dc.subject.stwProduktivitäten_US
dc.subject.stwBetriebsgrößeen_US
dc.subject.stwBolivienen_US
dc.titleUnderstanding productivity levels, dispersion and growth in the leather shoe industry: Effects of size and informalityen_US
dc.typeWorking Paperen_US
dc.identifier.ppn613598431en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Development Research Working Paper Series, Institute for Advanced Development Studies (INESAD)

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