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Georges Dieudonné Mbondo, Novice Patrick Bakehe and Ariel Herbert Fambeu
''Is informality contagious? An analysis of the effects of social conformism on the formalization of small business''
( 2022, Vol. 42 No.2 )
This study seeks to econometrically estimate the impact of social conformism on the will of managers to register their businesses. The data used is from the Second Employment and Informal Sector Survey (EESI 2) carried out in 2010 on 3560 micro and small Cameroonian businesses. Using an instrumental variable probit model, we find a positive and significant endogenous effect. However, we find that the social pressure which brings businesses to conformism acts only beyond a given threshold.
JEL: L2 - Firm Objectives, Organization, and Behavior: General
J1 - Demographic Economics: General
Manuscript Received : Mar 02 2021 Manuscript Accepted : Jun 30 2022

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