Ecuador : The Faces of Informality (Las Caras de La Informalidad)

Informality hampers economic performance at both macro and micro levels. High degree of informality and low economic growth tend to go hand-in-hand, although evidence shows that the relationship likely comes from common determinants of both. Inform...

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Bibliographic Details
Main Author:	World Bank
Format:	General Economy, Macroeconomics and Growth Study
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ACCESS TO CREDIT ACCESS TO FINANCE ACCESS TO FINANCING ADVANCED ECONOMIES AGE COMPOSITION BANK LOANS BANKS BARGAINING POWER BASIC NEEDS BORROWER BORROWING BRIBES BROKER BUSINESS ENVIRONMENT BUSINESS OPPORTUNITIES BUSINESS OPPORTUNITY BUSINESS OWNERS CASH FLOW COLLATERAL COMPANY COMPETITIVE PRESSURE CORRUPTION CREDIT ACCESS CREDIT GUARANTEES CREDIT MARKETS CURRENCY CUSTOMER BASE DEBT DEVELOPMENT BANK DISMISSAL DOMESTIC WORKERS DOWNSIZING DRIVERS EARNINGS ECONOMIC ACTIVITY ECONOMIC GROWTH EDUCATIONAL ATTAINMENT EMERGING ECONOMIES EMPLOYEE EMPLOYER EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT GROWTH RATES EMPLOYMENT OPPORTUNITIES ENTREPRENEUR ENTREPRENEURIAL ABILITY ENTREPRENEURS ENTREPRENEURSHIP EQUIPMENT EXCLUSION EXPANSION EXPANSIONS EXPORTER FAMILIES FAMILY BUSINESSES FAMILY RESPONSIBILITIES FEMALE ENTREPRENEURS FINANCIAL DEPTH FIRING RESTRICTIONS FIRM DYNAMICS FIRM ENTRY FIRM EXIT FIRM GROWTH FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIRM SURVIVAL FIRMS FIRST LOAN FORMAL FINANCIAL SECTOR FORMAL SECTOR WORKERS FUNDING SOURCE GENDER GROSS DOMESTIC PRODUCT HIGH INTEREST RATES HOUSEHOLDS INFLATION INFORMAL ECONOMY INFORMAL EMPLOYMENT INFORMAL LENDER INFORMAL LENDERS INFORMAL SECTOR INFORMAL WORKERS INFORMATION ASYMMETRIES INFORMATION SHARING INITIAL LOANS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT INTERNATIONAL STANDARDS INVENTORY INVESTMENT CLIMATE JOBS LABOR COSTS LABOR FORCE LABOR FORCE SURVEY LABOR MARKET LABOR MARKET INDICATORS LABOR MARKET RIGIDITIES LABOR PRODUCTIVITY LABOR REGULATION LABOR REGULATIONS LABOR RELATIONS LABOUR LACK OF ACCESS LACK OF INFORMATION LEGAL REQUIREMENT LEGAL REQUIREMENTS LIABILITY LIQUIDITY LOAN LOAN MATURITY LOAN SIZE LONG-TERM INVESTMENT LOW EMPLOYMENT MATURITY MEDIA CAMPAIGNS MEDIUM ENTERPRISE MICRO ENTREPRENEURS MICRO-ENTERPRISE MICRO-ENTERPRISES MICRO-ENTREPRENEURS MICROFINANCE MINIMUM WAGE NEW BUSINESS NOTARY OCCUPATIONS PAWN PENSIONS PERSONAL LOANS PRINCIPAL FACTOR PRIVATE FIRMS PRODUCING GOODS PRODUCTION UNITS PRODUCTIVITY GROWTH PROFITABILITY PUBLIC BANK PUBLIC POLICY RECEIPTS REFERENDUM REGULATORY FRAMEWORK RETURN RULE OF LAW SAFETY NETS SALARIED EMPLOYMENT SALARIED WORKER SALARIED WORKERS SALARY COSTS SAVINGS SELF-EMPLOYMENT SERVICE SECTORS SEVERANCE PAYMENTS SHADOW ECONOMY SHOP SHOP OWNERS SHOPS SIZE OF FIRM SMALL BUSINESS SMALL BUSINESSES SMALL ENTERPRISES SMALL FIRM SMALL FIRMS SMALL-SCALE ENTREPRENEURS SME SOCIAL SECURITY SOURCE OF INCOME SOURCES OF CREDIT SOURCES OF FINANCE START-UP START-UP CAPITAL START-UPS STATE SUPPORT SUPPLIER SUPPLIERS SURVIVAL RATE SURVIVAL RATES TAX TAX BENEFITS TAX BURDEN TAX REGIME TAX RULES TAX SYSTEM TAXATION TERMS OF LOANS TOTAL EMPLOYMENT TRAINED WORKERS URBAN AREAS VENDOR VENDORS WAGE EMPLOYMENT WOMEN OWNERS WORKER YOUNG WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2012/01/16702564/ecuador-faces-informality http://hdl.handle.net/10986/13252

Description
Summary:	Informality hampers economic performance at both macro and micro levels. High degree of informality and low economic growth tend to go hand-in-hand, although evidence shows that the relationship likely comes from common determinants of both. Informality in Ecuador remains high compared to other countries. This study offers a novel look at informality in Ecuador by directly asking firm owners and workers about their views and behavior. The analysis of the causes and costs of informality for firms in Ecuador in this study is based on data from a 2011 enterprise survey commissioned specifically for this study and complemented by focus groups and in-depth interviews. The survey captures the aspects of the regulatory framework which are most problematic for compliance, and the specific reasons for non-compliance. The study focuses on micro and small firms in the urban areas of Ecuador. The sectors of activity, geographic locations, and sizes of firms covered by this study were agreed upon with the Government during the initial consultations on the report. The study finds that many micro and small firms in Ecuador have limited growth potential, due to low entrepreneurial ability and lack of access to and poor quality of credit.

Ecuador : The Faces of Informality (Las Caras de La Informalidad)

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