Moving out of the bottom of the economy? Constraints to firm transition in the Indian informal manufacturing sector

Raj, S N Rajesh; Sen, Kunal

doi:10.1186/s40175-016-0056-8

Cited by 3 publications

(1 citation statement)

References 54 publications

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“…Labour productivity: Labour productivity is measured as the ratio of gross value added to employment. We follow the existing literature in including labour productivity as an additional control, as more productive firms are more likely to be entrepreneurial firms (Raj and Sen 2016a). We use the log of labour productivity in regression estimations.…”

Section: Firm Characteristics As Control Variablesmentioning

confidence: 99%

Finance, gender, and entrepreneurship: India’s informal sector firms

Gang¹,

Raj²,

Sen³

2020

WIDER Working Paper

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How does informal economic activity respond to increased financial inclusion? Does it become more entrepreneurial? Does access to new financing options change the gender configuration of informal economic activity and, if so, in what ways and what directions? We take advantage of nationwide data collected in 2010/11 and 2015/16 by India’s National Sample Survey Office on unorganized (informal) enterprises. This period was one of rapid expansion of banking availability aimed particularly at the unbanked, under-banked, and women. We find strong empirical evidence supporting the crucial role of financial access in promoting entrepreneurship among informal sector firms in India. Our results are robust to alternative specifications and alternative measures of financial constraints using an approach combining propensity score matching and difference-in-differences. However, we do not find conclusive evidence that increased financial inclusion leads to a higher likelihood of women becoming entrepreneurs than men in the informal sector.

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Section: Firm Characteristics As Control Variablesmentioning

confidence: 99%

Finance, gender, and entrepreneurship: India’s informal sector firms

Gang¹,

Raj²,

Sen³

2020

WIDER Working Paper

Self Cite

View full text Add to dashboard Cite

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Innovation, Firm Size and Ownership: A Study of Firm Transition in India

Agrawal

Singh

Mazumdar

2021

JGBC

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Numerous research studies emphasized the importance of innovation in competitiveness and economic growth. Using a sample of manufacturing-focused firms in India incorporated between the years 2004-2011 and following them for a period of five years post-incubation, we study the effect of innovation on the size transition of firms (i.e., the transition of firms from one size to another). We define the size of a firm by its annual sales turnover. The empirical analysis indicates that the impact of innovation on firm transition is conditional upon the firm size and the ownership structure of firms. The effect of innovation on firm transition varies with firm size. Further, the firms affiliated to a business group have a positive relationship indicating higher probability of transition. The novelty of this paper lies in a suggested conceptual framework based on the linkage between innovation activities and competitiveness signifying the structured approach towards firm transition. This study has significant implications for industrial policy in developing countries.

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