Releasing Constraints to Growth or Pushing on a String? The Impact of Credit, Training, Business Associations and Taxes on the Performance of Mexican Micro-Firms
The authors employ propensity score matching and a traditional control function approach to examine the impact of participation in various societal institutions on microfirm performance in Mexico. They find that firms that participate in credit markets, receive training, pay taxes, and belong to bus...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2006/01/6523116/releasing-constraints-growth-or-pushing-string-impact-credit-training-business-associations-taxes-performance-mexican-micro-firms http://hdl.handle.net/10986/8835 |
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okr-10986-88352021-04-23T14:02:40Z Releasing Constraints to Growth or Pushing on a String? The Impact of Credit, Training, Business Associations and Taxes on the Performance of Mexican Micro-Firms Fajnzylber, Pablo Maloney, William F. Rojas, Gabriel V. Montes CONDITIONING CREDIT MARKETS ECONOMIC SECTORS EFFICIENCY OF CAPITAL ESTIMATORS EXPENDITURES FINANCIAL INSTITUTIONS FIXED COSTS FUNCTIONAL FORMS GENDER GOVERNMENT REGULATIONS HUMAN CAPITAL INCOME INCOME EFFECT INCOME LEVELS INDIVIDUAL CHARACTERISTICS INFERENCE INVENTORIES METHODOLOGIES NORMAL GOOD PERCEPTION PERMANENT INCOME PERSONAL LIABILITIES POSITIVE EFFECTS PROPERTY RIGHTS REAL INCOME RESEARCH WORKING PAPERS SCENARIOS SPECULATION TAX PAYMENTS TAXATION TECHNIQUES THINKING VALIDITY The authors employ propensity score matching and a traditional control function approach to examine the impact of participation in various societal institutions on microfirm performance in Mexico. They find that firms that participate in credit markets, receive training, pay taxes, and belong to business associations exhibit significantly higher profits, even after controlling for the various factors that drive participation in those institutions. They also find that firms that borrow from formal or informal sources and those that pay taxes are significantly more likely to stay in business, but firms that received credit exhibit lower rates of income growth. Overall, the results suggest that even if the best performing micro-firms are more likely to be selected into participating in societal institutions, causality also runs in the opposite direction. In particular, increases in strictly or broadly defined formality have the potential for increasing profits and survival rates, and appear to bring micro-firms closer to their optimal sizes. 2012-06-22T19:31:28Z 2012-06-22T19:31:28Z 2006-01 http://documents.worldbank.org/curated/en/2006/01/6523116/releasing-constraints-growth-or-pushing-string-impact-credit-training-business-associations-taxes-performance-mexican-micro-firms http://hdl.handle.net/10986/8835 English Policy Research Working Paper; No. 3807 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
CONDITIONING CREDIT MARKETS ECONOMIC SECTORS EFFICIENCY OF CAPITAL ESTIMATORS EXPENDITURES FINANCIAL INSTITUTIONS FIXED COSTS FUNCTIONAL FORMS GENDER GOVERNMENT REGULATIONS HUMAN CAPITAL INCOME INCOME EFFECT INCOME LEVELS INDIVIDUAL CHARACTERISTICS INFERENCE INVENTORIES METHODOLOGIES NORMAL GOOD PERCEPTION PERMANENT INCOME PERSONAL LIABILITIES POSITIVE EFFECTS PROPERTY RIGHTS REAL INCOME RESEARCH WORKING PAPERS SCENARIOS SPECULATION TAX PAYMENTS TAXATION TECHNIQUES THINKING VALIDITY |
| spellingShingle |
CONDITIONING CREDIT MARKETS ECONOMIC SECTORS EFFICIENCY OF CAPITAL ESTIMATORS EXPENDITURES FINANCIAL INSTITUTIONS FIXED COSTS FUNCTIONAL FORMS GENDER GOVERNMENT REGULATIONS HUMAN CAPITAL INCOME INCOME EFFECT INCOME LEVELS INDIVIDUAL CHARACTERISTICS INFERENCE INVENTORIES METHODOLOGIES NORMAL GOOD PERCEPTION PERMANENT INCOME PERSONAL LIABILITIES POSITIVE EFFECTS PROPERTY RIGHTS REAL INCOME RESEARCH WORKING PAPERS SCENARIOS SPECULATION TAX PAYMENTS TAXATION TECHNIQUES THINKING VALIDITY Fajnzylber, Pablo Maloney, William F. Rojas, Gabriel V. Montes Releasing Constraints to Growth or Pushing on a String? The Impact of Credit, Training, Business Associations and Taxes on the Performance of Mexican Micro-Firms |
| geographic_facet |
Latin America & Caribbean Mexico |
| relation |
Policy Research Working Paper; No. 3807 |
| description |
The authors employ propensity score matching and a traditional control function approach to examine the impact of participation in various societal institutions on microfirm performance in Mexico. They find that firms that participate in credit markets, receive training, pay taxes, and belong to business associations exhibit significantly higher profits, even after controlling for the various factors that drive participation in those institutions. They also find that firms that borrow from formal or informal sources and those that pay taxes are significantly more likely to stay in business, but firms that received credit exhibit lower rates of income growth. Overall, the results suggest that even if the best performing micro-firms are more likely to be selected into participating in societal institutions, causality also runs in the opposite direction. In particular, increases in strictly or broadly defined formality have the potential for increasing profits and survival rates, and appear to bring micro-firms closer to their optimal sizes. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Fajnzylber, Pablo Maloney, William F. Rojas, Gabriel V. Montes |
| author_facet |
Fajnzylber, Pablo Maloney, William F. Rojas, Gabriel V. Montes |
| author_sort |
Fajnzylber, Pablo |
| title |
Releasing Constraints to Growth or Pushing on a String? The Impact of Credit, Training, Business Associations and Taxes on the Performance of Mexican Micro-Firms |
| title_short |
Releasing Constraints to Growth or Pushing on a String? The Impact of Credit, Training, Business Associations and Taxes on the Performance of Mexican Micro-Firms |
| title_full |
Releasing Constraints to Growth or Pushing on a String? The Impact of Credit, Training, Business Associations and Taxes on the Performance of Mexican Micro-Firms |
| title_fullStr |
Releasing Constraints to Growth or Pushing on a String? The Impact of Credit, Training, Business Associations and Taxes on the Performance of Mexican Micro-Firms |
| title_full_unstemmed |
Releasing Constraints to Growth or Pushing on a String? The Impact of Credit, Training, Business Associations and Taxes on the Performance of Mexican Micro-Firms |
| title_sort |
releasing constraints to growth or pushing on a string? the impact of credit, training, business associations and taxes on the performance of mexican micro-firms |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2006/01/6523116/releasing-constraints-growth-or-pushing-string-impact-credit-training-business-associations-taxes-performance-mexican-micro-firms http://hdl.handle.net/10986/8835 |
| _version_ |
1764405743898853376 |