What to Do with the Informal Sector ?

  title={What to Do with the Informal Sector ?},
  author={Arne Bigsten and Peter Kimuyu and Karl Lundvall},
Almost all informal firms in the Kenyan manufacturing sector are managed by Kenyans of African origin. Formal enterprises are run by Kenyans of both African and Asian origin. These three groups are distinct in terms of experience, productivity and access to finance. Asian formal firms are the most efficient, while there is no significant productivity difference between informal and formal African firms. There are thus weak incentives for African informal firms to become formal. At the same time… CONTINUE READING

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