Gasmi, Farid, Kouakou, Dorgyles and Sanni, Maruf (2022) The effect of firm informality on sustainable and responsible innovation in developing countries: Evidence from Nigeria. TSE Working Paper, n. 22-1368, Toulouse

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At the turn of the millennium, developing countries face a twofold societal challenge. First,
these countries need to understand the deep principles underpinning informality, which is by
now recognized as a structuring phenomenon of their economies. Second, for reasons related
to both intra- and inter-generational justice, these countries need to follow the sustainable
development pathway. This paper highlights a micro-economic aspect of the relationship
between these two goals by investigating how a firm being formal versus informal affects its
sustainable and responsible innovation (S&RI) activity, a milestone for sustainable
development. Using a propensity score matching methodological approach to analyze an
original database extracted from the Nigerian Business Innovation Surveys for 2005-2007, we
find that registered Nigerian firms have a higher propensity to introduce S&RIs than
unregistered firms. This result is robust to alternative and widely used matching methods.
Hence, in the prospect of sustainable development of Nigeria and developing countries in
general, there should not be a hiatus between acknowledging and further understanding the
importance of informality in the economy and promoting policies that give firms incentives to

Item Type: Monograph (Working Paper)
Language: English
Date: October 2022
Place of Publication: Toulouse
Uncontrolled Keywords: Sustainable development, sustainable and responsible innovation, informality,, developing countries, Nigeria.
JEL Classification: O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements - Legal, Social, Economic, and Political
O55 - Africa
Q01 - Sustainable Development
Q55 - Technological Innovation
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 07 Oct 2022 12:49
Last Modified: 31 Jan 2023 09:48
OAI Identifier:
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