TY  - UNPD
A1  - Massenot, Baptiste
A1  - Straub, Stéphane
T1  - Informal sector and economic development: the credit supply channel
T2  - SAFE working paper series ; No. 106
N2  - The standard view suggests that removing barriers to entry and improving judicial enforcement reduces informality and boosts investment and growth. However, a general equilibrium approach shows that this conclusion may hold to a lesser extent in countries with a constrained supply of funds because of, for example, a more concentrated banking sector or lower financial openness. When the formal sector grows larger in those countries, more entrepreneurs become creditworthy, but the higher pressure on the credit market limits further capital accumulation. We show empirical evidence consistent with these predictions.
T3  - SAFE working paper - 106 
Y1  - 2015
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/37787
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-377875
UR  - http://ssrn.com/abstract=2611570
IS  - May 2015
PB  - SAFE
CY  - Frankfurt am Main
ER  -