Bolivia : Policies for Increasing Firms’ Formality and Productivity
The study provides policy recommendations to increase the productivity of micro and small firms in Bolivia and to provide incentives for firms to formalize based on a fresh understanding of firms behavior regarding formality, productivity, and...
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| Format: | General Economy, Macroeconomics and Growth Study |
| Language: | English |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/02/9243740/bolivia-policies-increasing-firms-formality-productivity http://hdl.handle.net/10986/8003 |
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okr-10986-80032021-04-23T14:02:36Z Bolivia : Policies for Increasing Firms’ Formality and Productivity World Bank ACCESS TO INFORMATION ACCOUNTING STANDARDS ACTIONS ADMINISTRATIVE FUNCTIONS ADMINISTRATIVE PROCEDURES ADMINISTRATIVE SYSTEMS ADVERSE SELECTION AGENTS ALLEGIANCE ANTITRUST LAW ASSURANCE AUDITS AUTHORITY BANKRUPTCY BUREAUCRACY CENTRALIZATION CERTIFIED PUBLIC ACCOUNTANTS CITIZENS COMMON LAW CONSTITUTION CONSTITUTIONS CORRUPTION DECISIONMAKING DECREE DECREES DEMAND DEPOSITS DEMOCRACIES DEVELOPED COUNTRIES DISCLOSURE ECONOMIC DEVELOPMENT ECONOMICS ELECTED OFFICIALS ENFORCEMENT ENFORCEMENT ACTION EQUILIBRIUM GOVERNMENT ADMINISTRATION GOVERNMENT ADMINISTRATORS GOVERNMENT DEPARTMENTS GOVERNMENT OFFICIALS GOVERNMENT POLICY HUMAN CAPITAL INCOME INFORMATION COSTS INSURANCE JUDICIARY LACK OF COMPETITION LAND DISPUTES LAW LAW ENFORCEMENT LAWYERS LEGAL CHANGES LEGAL CULTURE LEGAL DEVELOPMENT LEGAL DOCUMENTS LEGAL FRAMEWORK LEGAL INSTITUTIONS LEGAL ISSUES LEGAL REQUIREMENTS LEGAL RIGHTS LEGAL STANDARDS LEGAL SYSTEM LEGAL SYSTEMS LEGISLATION LEGISLATORS LEGISLATURE LEGITIMACY MINISTERS MOTIVATIONS NATIONAL LEVEL NATIONS POLICY MAKERS POLITICAL INSTABILITY POLITICAL RISK PRODUCERS PUBLIC ADMINISTRATION PUBLIC OFFICIALS PUBLIC SECTOR QUANTITATIVE ANALYSIS RISK AVERSION RISK SHARING SANCTIONS SECURITIES SHARECROPPING TAX ADMINISTRATION TAX COLLECTION TAX EXEMPTIONS TAX LAW TAX LAWS TAX RATE TAX RATES TAX SYSTEM TAXATION LAW LAW REFORM ECONOMIC DEVELOPMENT CORRUPTION PENAL SANCTIONS MODELS RISK COSTS TAX SYSTEMS The study provides policy recommendations to increase the productivity of micro and small firms in Bolivia and to provide incentives for firms to formalize based on a fresh understanding of firms behavior regarding formality, productivity, and profitability. The study draws upon a new qualitative analysis based on focus group interviews and a new quantitative survey of 640 firms in six industries. The survey enables to control for a rich set of measures of owner ability and business motivations that can affect both profits and the decision to formalize. The findings show that tax registration leads to significantly higher profits for the mid-size firms in the sample, but to lower profits for both the smaller and larger firms, in contrast to the standard view that formality increases profits. The qualitative analysis based on focus groups reveals that access to capital seems to be the main constraint to productivity for all micro and small firms. However, the survey indicates that while registering at the municipal level improves firms' access to finance, getting a tax number does not. In the short term, policy recommendations should focus on increasing the benefits of formalization through training, access to credit and markets, and other forms of business support. The second priority in the short term is to increase information on how to formalize and its benefits. Measures to boost the productivity of micro and small firms in general will both help overall economic growth, employment, and, indirectly, formalization. 2012-06-14T15:16:28Z 2012-06-14T15:16:28Z 2008-02 http://documents.worldbank.org/curated/en/2008/02/9243740/bolivia-policies-increasing-firms-formality-productivity http://hdl.handle.net/10986/8003 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: General Economy, Macroeconomics and Growth Study Economic & Sector Work Latin America & Caribbean Bolivia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO INFORMATION ACCOUNTING STANDARDS ACTIONS ADMINISTRATIVE FUNCTIONS ADMINISTRATIVE PROCEDURES ADMINISTRATIVE SYSTEMS ADVERSE SELECTION AGENTS ALLEGIANCE ANTITRUST LAW ASSURANCE AUDITS AUTHORITY BANKRUPTCY BUREAUCRACY CENTRALIZATION CERTIFIED PUBLIC ACCOUNTANTS CITIZENS COMMON LAW CONSTITUTION CONSTITUTIONS CORRUPTION DECISIONMAKING DECREE DECREES DEMAND DEPOSITS DEMOCRACIES DEVELOPED COUNTRIES DISCLOSURE ECONOMIC DEVELOPMENT ECONOMICS ELECTED OFFICIALS ENFORCEMENT ENFORCEMENT ACTION EQUILIBRIUM GOVERNMENT ADMINISTRATION GOVERNMENT ADMINISTRATORS GOVERNMENT DEPARTMENTS GOVERNMENT OFFICIALS GOVERNMENT POLICY HUMAN CAPITAL INCOME INFORMATION COSTS INSURANCE JUDICIARY LACK OF COMPETITION LAND DISPUTES LAW LAW ENFORCEMENT LAWYERS LEGAL CHANGES LEGAL CULTURE LEGAL DEVELOPMENT LEGAL DOCUMENTS LEGAL FRAMEWORK LEGAL INSTITUTIONS LEGAL ISSUES LEGAL REQUIREMENTS LEGAL RIGHTS LEGAL STANDARDS LEGAL SYSTEM LEGAL SYSTEMS LEGISLATION LEGISLATORS LEGISLATURE LEGITIMACY MINISTERS MOTIVATIONS NATIONAL LEVEL NATIONS POLICY MAKERS POLITICAL INSTABILITY POLITICAL RISK PRODUCERS PUBLIC ADMINISTRATION PUBLIC OFFICIALS PUBLIC SECTOR QUANTITATIVE ANALYSIS RISK AVERSION RISK SHARING SANCTIONS SECURITIES SHARECROPPING TAX ADMINISTRATION TAX COLLECTION TAX EXEMPTIONS TAX LAW TAX LAWS TAX RATE TAX RATES TAX SYSTEM TAXATION LAW LAW REFORM ECONOMIC DEVELOPMENT CORRUPTION PENAL SANCTIONS MODELS RISK COSTS TAX SYSTEMS |
| spellingShingle |
ACCESS TO INFORMATION ACCOUNTING STANDARDS ACTIONS ADMINISTRATIVE FUNCTIONS ADMINISTRATIVE PROCEDURES ADMINISTRATIVE SYSTEMS ADVERSE SELECTION AGENTS ALLEGIANCE ANTITRUST LAW ASSURANCE AUDITS AUTHORITY BANKRUPTCY BUREAUCRACY CENTRALIZATION CERTIFIED PUBLIC ACCOUNTANTS CITIZENS COMMON LAW CONSTITUTION CONSTITUTIONS CORRUPTION DECISIONMAKING DECREE DECREES DEMAND DEPOSITS DEMOCRACIES DEVELOPED COUNTRIES DISCLOSURE ECONOMIC DEVELOPMENT ECONOMICS ELECTED OFFICIALS ENFORCEMENT ENFORCEMENT ACTION EQUILIBRIUM GOVERNMENT ADMINISTRATION GOVERNMENT ADMINISTRATORS GOVERNMENT DEPARTMENTS GOVERNMENT OFFICIALS GOVERNMENT POLICY HUMAN CAPITAL INCOME INFORMATION COSTS INSURANCE JUDICIARY LACK OF COMPETITION LAND DISPUTES LAW LAW ENFORCEMENT LAWYERS LEGAL CHANGES LEGAL CULTURE LEGAL DEVELOPMENT LEGAL DOCUMENTS LEGAL FRAMEWORK LEGAL INSTITUTIONS LEGAL ISSUES LEGAL REQUIREMENTS LEGAL RIGHTS LEGAL STANDARDS LEGAL SYSTEM LEGAL SYSTEMS LEGISLATION LEGISLATORS LEGISLATURE LEGITIMACY MINISTERS MOTIVATIONS NATIONAL LEVEL NATIONS POLICY MAKERS POLITICAL INSTABILITY POLITICAL RISK PRODUCERS PUBLIC ADMINISTRATION PUBLIC OFFICIALS PUBLIC SECTOR QUANTITATIVE ANALYSIS RISK AVERSION RISK SHARING SANCTIONS SECURITIES SHARECROPPING TAX ADMINISTRATION TAX COLLECTION TAX EXEMPTIONS TAX LAW TAX LAWS TAX RATE TAX RATES TAX SYSTEM TAXATION LAW LAW REFORM ECONOMIC DEVELOPMENT CORRUPTION PENAL SANCTIONS MODELS RISK COSTS TAX SYSTEMS World Bank Bolivia : Policies for Increasing Firms’ Formality and Productivity |
| geographic_facet |
Latin America & Caribbean Bolivia |
| description |
The study provides policy
recommendations to increase the productivity of micro and
small firms in Bolivia and to provide incentives for firms
to formalize based on a fresh understanding of firms
behavior regarding formality, productivity, and
profitability. The study draws upon a new qualitative
analysis based on focus group interviews and a new
quantitative survey of 640 firms in six industries. The
survey enables to control for a rich set of measures of
owner ability and business motivations that can affect both
profits and the decision to formalize. The findings show
that tax registration leads to significantly higher profits
for the mid-size firms in the sample, but to lower profits
for both the smaller and larger firms, in contrast to the
standard view that formality increases profits. The
qualitative analysis based on focus groups reveals that
access to capital seems to be the main constraint to
productivity for all micro and small firms. However, the
survey indicates that while registering at the municipal
level improves firms' access to finance, getting a tax
number does not. In the short term, policy recommendations
should focus on increasing the benefits of formalization
through training, access to credit and markets, and other
forms of business support. The second priority in the short
term is to increase information on how to formalize and its
benefits. Measures to boost the productivity of micro and
small firms in general will both help overall economic
growth, employment, and, indirectly, formalization. |
| format |
Economic & Sector Work :: General Economy, Macroeconomics and Growth Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Bolivia : Policies for Increasing Firms’ Formality and Productivity |
| title_short |
Bolivia : Policies for Increasing Firms’ Formality and Productivity |
| title_full |
Bolivia : Policies for Increasing Firms’ Formality and Productivity |
| title_fullStr |
Bolivia : Policies for Increasing Firms’ Formality and Productivity |
| title_full_unstemmed |
Bolivia : Policies for Increasing Firms’ Formality and Productivity |
| title_sort |
bolivia : policies for increasing firms’ formality and productivity |
| publisher |
Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/02/9243740/bolivia-policies-increasing-firms-formality-productivity http://hdl.handle.net/10986/8003 |
| _version_ |
1764403311279079424 |