The bright side of formalization policies! Meta-analysis of the benefits of policy-induced versus self-induced formalization

This paper provides a meta-analysis of the impact business formalization on performance. We exploit meta-dataset 1,271 estimates derived from 20 studies available until October 2019. The analysis reveals that is associated with fairly small benefits take time to materialize. then exploited difference between policy-induced and self-induced investigating underlying effects, publication bias, sources heterogeneity. Policy-induced brings large benefits, whereas only results in medium suggesting indeed can be spurred by adequate policy actions. To most effective, policies should implemented information sessions, trainings/workshops, development services unleash growth potential newly formalized firms potent way.