is informality contagious? An analysis of the effects of social conformism on the formalization of small business

Georges Dieudonné Mbondo; Novice Patrick Bakehe; Ariel Herbert Fambeu

is informality contagious? An analysis of the effects of social conformism on the formalization of small business

Georges Dieudonné Mbondo, Novice Patrick Bakehe, Ariel Herbert Fambeu

Université de Douala

Research output: Contribution to journal › Article › peer-review

Abstract

This study seeks to econometrically estimate the impact of social conformism on the will of managers to register their businesses. The data used is from the Second Employment and Informal Sector Survey (EESI 2) carried out in 2010 on 3560 micro and small Cameroonian businesses. Using an instrumental variable probit model, we find a positive and significant endogenous effect. However, we find that the social pressure which brings businesses to conformism acts only beyond a given threshold.

Original language	English
Pages (from-to)	317-329
Number of pages	13
Journal	Economics Bulletin
Volume	42
Issue number	2
Publication status	Published - 2022
Externally published	Yes

ASJC Scopus subject areas

General Economics,Econometrics and Finance

Cite this

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AB - This study seeks to econometrically estimate the impact of social conformism on the will of managers to register their businesses. The data used is from the Second Employment and Informal Sector Survey (EESI 2) carried out in 2010 on 3560 micro and small Cameroonian businesses. Using an instrumental variable probit model, we find a positive and significant endogenous effect. However, we find that the social pressure which brings businesses to conformism acts only beyond a given threshold.

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is informality contagious? An analysis of the effects of social conformism on the formalization of small business

Abstract

ASJC Scopus subject areas

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