The formalization of the Egyptian informal sector: a behavioral and experimental approach
Purpose – This paper aims at assessing the impact of a number of behavioral interventions on the willingness of informal businesses, in the Egyptian informal sector, to join the formal sector. Design/methodology/approach – This paper uses an experimental methodology to examine the impact of behavior...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing
2025-05-01
|
| Series: | Review of Economics and Political Science |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/REPS-05-2022-0028/full/pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849733194866229248 |
|---|---|
| author | Rania Moaaz Sarah Mansour |
| author_facet | Rania Moaaz Sarah Mansour |
| author_sort | Rania Moaaz |
| collection | DOAJ |
| description | Purpose – This paper aims at assessing the impact of a number of behavioral interventions on the willingness of informal businesses, in the Egyptian informal sector, to join the formal sector. Design/methodology/approach – This paper uses an experimental methodology to examine the impact of behavioral interventions on the formalization of the Egyptian informal sector. Specifically, it conducts a survey experiment on a total of 240 informal businesses, operating in the Egyptian informal sector. The primary data collected from the survey experiment is then analyzed using a binary logistic regression to assess the impact of the behavioral primes on the probability of joining the formal market. Findings – The empirical findings of the survey experiment indicate that the biggest obstacle facing informal businesses is finding a formal source of finance that could help them in penetrating the market. Providing informal businesses with information on funding opportunities offered by the ministry of micro, small and medium enterprises (MSME) significantly increased the probability of joining the formal sector to benefit from this opportunity. Originality/value – This paper is the first to apply behavioral primes, in the form of informational cues, to the Egyptian case of informal business owners. Previous research on the use of behavioral nudges and primes has focused mainly on the western economies. |
| format | Article |
| id | doaj-art-4eb83cdaeede4c6b819cd9a3c33a1f3c |
| institution | DOAJ |
| issn | 2631-3561 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Review of Economics and Political Science |
| spelling | doaj-art-4eb83cdaeede4c6b819cd9a3c33a1f3c2025-08-20T03:08:06ZengEmerald PublishingReview of Economics and Political Science2631-35612025-05-0110320622110.1108/REPS-05-2022-0028The formalization of the Egyptian informal sector: a behavioral and experimental approachRania Moaaz0Sarah Mansour1Department of Economics, New Giza University, Giza, EgyptDepartment of Economics, Cairo University, Cairo, EgyptPurpose – This paper aims at assessing the impact of a number of behavioral interventions on the willingness of informal businesses, in the Egyptian informal sector, to join the formal sector. Design/methodology/approach – This paper uses an experimental methodology to examine the impact of behavioral interventions on the formalization of the Egyptian informal sector. Specifically, it conducts a survey experiment on a total of 240 informal businesses, operating in the Egyptian informal sector. The primary data collected from the survey experiment is then analyzed using a binary logistic regression to assess the impact of the behavioral primes on the probability of joining the formal market. Findings – The empirical findings of the survey experiment indicate that the biggest obstacle facing informal businesses is finding a formal source of finance that could help them in penetrating the market. Providing informal businesses with information on funding opportunities offered by the ministry of micro, small and medium enterprises (MSME) significantly increased the probability of joining the formal sector to benefit from this opportunity. Originality/value – This paper is the first to apply behavioral primes, in the form of informational cues, to the Egyptian case of informal business owners. Previous research on the use of behavioral nudges and primes has focused mainly on the western economies.https://www.emerald.com/insight/content/doi/10.1108/REPS-05-2022-0028/full/pdfSurvey experimentPrimesEgyptInformal sectorFormalization |
| spellingShingle | Rania Moaaz Sarah Mansour The formalization of the Egyptian informal sector: a behavioral and experimental approach Review of Economics and Political Science Survey experiment Primes Egypt Informal sector Formalization |
| title | The formalization of the Egyptian informal sector: a behavioral and experimental approach |
| title_full | The formalization of the Egyptian informal sector: a behavioral and experimental approach |
| title_fullStr | The formalization of the Egyptian informal sector: a behavioral and experimental approach |
| title_full_unstemmed | The formalization of the Egyptian informal sector: a behavioral and experimental approach |
| title_short | The formalization of the Egyptian informal sector: a behavioral and experimental approach |
| title_sort | formalization of the egyptian informal sector a behavioral and experimental approach |
| topic | Survey experiment Primes Egypt Informal sector Formalization |
| url | https://www.emerald.com/insight/content/doi/10.1108/REPS-05-2022-0028/full/pdf |
| work_keys_str_mv | AT raniamoaaz theformalizationoftheegyptianinformalsectorabehavioralandexperimentalapproach AT sarahmansour theformalizationoftheegyptianinformalsectorabehavioralandexperimentalapproach AT raniamoaaz formalizationoftheegyptianinformalsectorabehavioralandexperimentalapproach AT sarahmansour formalizationoftheegyptianinformalsectorabehavioralandexperimentalapproach |