Firms informality is pervasive in Bangladesh. The authors implemented an information campaign on registration and find that the treatment made firms more aware, but had no impact on registration. Low benefits and high indirect costs appear to be barriers to formality.
This research was funded under the Private Enterprise Development in Low-Income Countries (PEDL) Programme
De Giorgi, G., Rahman, A. (2013), SME’s registration: Evidence from an RCT in Bangladesh, Economics Letters, vol 120(3)