Publication: Ecuador : The Faces of Informality (Las Caras de La Informalidad)
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Date
2012
ISSN
Published
2012
Author(s)
World Bank
Abstract
Informality hampers economic performance
at both macro and micro levels. High degree of informality
and low economic growth tend to go hand-in-hand, although
evidence shows that the relationship likely comes from
common determinants of both. Informality in Ecuador remains
high compared to other countries. This study offers a novel
look at informality in Ecuador by directly asking firm
owners and workers about their views and behavior. The
analysis of the causes and costs of informality for firms in
Ecuador in this study is based on data from a 2011
enterprise survey commissioned specifically for this study
and complemented by focus groups and in-depth interviews.
The survey captures the aspects of the regulatory framework
which are most problematic for compliance, and the specific
reasons for non-compliance. The study focuses on micro and
small firms in the urban areas of Ecuador. The sectors of
activity, geographic locations, and sizes of firms covered
by this study were agreed upon with the Government during
the initial consultations on the report. The study finds
that many micro and small firms in Ecuador have limited
growth potential, due to low entrepreneurial ability and
lack of access to and poor quality of credit.
Citation
“World Bank. 2012. Ecuador : The Faces of Informality (Las Caras de La Informalidad); Ecuador - Las caras de la informalidad. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/d5b55db2-0a9a-5068-bf21-ded0ab4d0068 License: CC BY 3.0 IGO.”