Publication:
Spatial Inequality and Informality in Kenya’s Firm Network

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dc.contributor.authorWiedemann, Verena
dc.contributor.authorKirui, Benard K.
dc.contributor.authorKhandelwal, Vatsal
dc.contributor.authorChacha, Peter W.
dc.date.accessioned2024-09-30T18:12:16Z
dc.date.available2024-09-30T18:12:16Z
dc.date.issued2024-09-30
dc.description.abstractThe spatial configuration of domestic supply chains plays a crucial role in the transmission of shocks. This paper investigates the representativeness of formal firm-to-firm trade data in capturing overall domestic trade patterns in Kenya — a context with a high prevalence of informal economic activity. It first documents a series of stylized facts and shows that informal economic activity is not randomly distributed across space and sectors, with a higher incidence of informality in downstream sectors and smaller regional markets. The paper then links granular transaction-level data on formal firms with data on informal economic activity to estimate a structural model and predict a counterfactual network that accounts for informal firms. The findings show that formal sector data overstates the spatial concentration of aggregate trade flows and under accounts for trade within regions and across regions with stronger social ties. Additionally, the higher the informality in a sector and region is, the more formal sector data underestimates its vulnerability to domestic output shocks and overestimate its vulnerability to import shocks.en
dc.identifierhttp://documents.worldbank.org/curated/en/099158309302418763/IDU1cbcafe951348e147c4181b218f42b4ec6da5
dc.identifier.doi10.1596/1813-9450-10932
dc.identifier.urihttps://hdl.handle.net/10986/42215
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10932
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectINFORMALITY
dc.subjectSUPPLY CHAINS
dc.subjectSPATIAL INEQUALITY
dc.subjectFIRM NETWORKS
dc.subjectDECENT WORK AND ECONOMIC GROWTH
dc.subjectSDG 8
dc.subjectTRADE
dc.titleSpatial Inequality and Informality in Kenya’s Firm Networken
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleSpatial Inequality and Informality in Kenya’s Firm Network
okr.date.disclosure2024-09-30
okr.date.lastmodified2024-09-30T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099158309302418763/IDU1cbcafe951348e147c4181b218f42b4ec6da5
okr.guid099158309302418763
okr.identifier.docmidIDU-cbcafe95-348e-47c4-81b2-8f42b4ec6da5
okr.identifier.doi10.1596/1813-9450-10932
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10932
okr.identifier.externaldocumentum34396866
okr.identifier.internaldocumentum34396866
okr.identifier.reportWPS10932
okr.import.id5384
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099158309302418763/pdf/IDU1cbcafe951348e147c4181b218f42b4ec6da5.pdfen
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countryKenya
okr.topicInternational Economics and Trade::Trade Finance and Investment
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicIndustry::Industrial Management
okr.unitIFC
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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