Geographic spread of COVID‐19 and local economies: Heterogeneous effects by establishment size and industry

Recent evidence suggests that formality improves micro-firms profits in Bolivia. This gain is only for firms with 2 to 5 workers, while smaller and larger firms would lose out by formalizing (McKenzie and Sakho, 2010). However, as much of the empirical literature on this topic, the estimations are based on strong assumptions about unobservables. If the returns to formality vary among firms and these variations influence selection into formality, traditional estimators are biased (Heckman and Vytlacil, 2007). In this paper we considerthese elements to estimate the heterogeneous effects of formality on firm profits in Bolivia. We find remarkable heterogeneity in the returns to formality, from -3% to 6%. The group of firms with positive marginal effects from formality corresponds to those which are most likely to register. We also characterize the firms that likely benefit from having a formal status. These would correspond to large firms which work at big scales.

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The Role of Entrepreneurship in Local Economic Growth: Example of Gaziantep

International Conference on Eurasian Economies 2012 ◽

10.36880/c03.00487 ◽

2012 ◽

Author(s):

Mehmet Vahit Eren ◽

Erdinç Tutar ◽

Filiz Tutar ◽

Çisil Erkan

Keyword(s):

Swot Analysis ◽

Vital Role ◽

Local Economy ◽

Government Policies ◽

Optimum Level ◽

Economic Sectors ◽

Local Economies ◽

The Status ◽

Financial Growth

In order to avoid social inequality of opportunity and improvement of local economies have become government policies in Turkey, as it is in other countries around the world. Incentives, regional development agencies, techno parks and also local entrepreneurs play crucial role in the improvement process of local economies. The increasing rivalry and globalization concept necessitate entrepreneurs to take more risks, to reach innovations to seize opportunities in optimum level. Entrepreneurship is a motor vessel in financial growth and in development, and entrepreneurship is also the source of innovation and creativity. In this regard, the more entrepreneurship develops in a country, the higher level of welfare possesses the chance to advance. The purpose of this report, in which it has been aimed to reveal vital role of entrepreneurship in the progress of local economies, is emphasizing the status of entrepreneurship that transformed Gaziantep’s socio-economic level of development into its present position. Thus with this aim a SWOT analysis, in terms of Gaziantep’s economic entrepreneurship has been carried out. Positive contributions of Gaziantep’s immensely developed industry, facilitation of local innovative entrepreneurs’ involvement in various local economic sectors and in accordance channeling immigration into deployment in local economy have been observed in this study. Significantly it has been observed that plenitude of “opportunist entrepreneurship” or in other words “the entrepreneurs with strategic growth plans” in this region contributed local economy positively.

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