Informality and Firm Performance in Myanmar

Using a unique panel survey of enterprises, we examine the relationship between four categories formalization and firm productivity. We carry out one- two-step productivity estimations whose robustness check with matching doubly robust estimators. The only category that appears to be significantly associated is tax formalization, i.e. firm’s decision pay taxes. This positive association holds for firms were already more productive bigger before formalizing than other informal firms. reason insignificance remaining three likely insignificant potential benefits such as access credit, employees, investments. High taxes fees linked seem outweigh few non-existent intermediate formalization.