L'informalité des micro-et petites entreprises en Égypte: Une analyse transversale

Abstract

Despite the socioeconomic importance of micro and small enterprises (MSEs) in Egypt, most of them are running on an informal basis. This paper uses an instrumental variable approach to estimate the impact ofinformality on the performance of 5000 Egyptian MSEs in 2003. The results of our Probit model show that the productivity increases when the firm operates formally However, this positive effect is subject to the improvement of MPEs' human & financial capitals. These findings highlight the importance offormalization policies.