Do Entry Costs Provide an Empirical Basis for Poverty Traps? Evidence from Mexican Microenterprises

By David J. McKenzie, Christopher Woodruff. Economic development and cultural change, 2006

350 citations recorded by the source corpus.

Subfields: Business and International Management, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/b5bd403a35f0329322761f7a40fb9beab6b880ea

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Citations in the corpus

The entrepreneurial earnings puzzle: Mismeasurement or real? (2014, background): “For developing countries, it appears that the returns to capital are significant, especially at lower (micro) investment amounts (McKenzie and Woodruff, 2006).”
Constrained Gazelles: High Potentials in West Africa’s Informal Economy (2012, methodology): “…- including a study based on the same data used in this paper - shows that entrepreneurs who operate with low levels of invested capital can earn high returns to capital (De Mel, McKenzie and Woodruff, 2008; McKenzie and Woodruff, 2006; Kremer, Lee and Robinson 2010; Grimm, Krüger and Lay, 2011).”
Entrepreneurship and Financial Frictions: A Macrodevelopment Perspective (2015, neutral): “McKenzie and Woodruff (2006) attempt to directly measure the importance of nonconvex returns to capital using ENAMIN data, a non-experimental small-firm dataset in Mexico.”
Microcredit Impacts: Evidence from a Randomized Microcredit Program Placement Experiment by Compartamos Banco (2014, positive): “But existing evidence suggests that returns to capital in Mexico are about 200 percent for microentrepreneurs (McKenzie and Woodruff 2006, 2008), and other studies find evidence suggesting high returns on investment in other household activities (Karlan and Zinman 2010; Dupas and Robinson 2013),…”
Finance and Cluster‐Based Industrial Development in China (2009, background): “Our evidence supports the findings by Mead and Leidholm (1998) and McKenzie and Woodruff (2006) that the nonconvexity problem is not as serious as previously thought.”
Firm Dynamics, Productivity Growth, and Job Creation in Developing Countries: The Role of Micro- and Small Enterprises (2015, neutral): “McKenzie and Woodruff (2006) reported marginal return rates of 15 percent per month among Mexican micro- and small firms with investment levels below US$200.”
Financing Constraints and Entrepreneurship (2009, background): “Representative papers include Morduch (1999), Paulson and Townsend (2004), Paulson et al. (2006), McKenzie and Woodruff (2006, 2008), Banerjee and Duflo (2008), and De Mel et al. (2008).”
Liquidity, Risk, and Occupational Choices (2010, background): “This may suggest that financial barriers to entry into self-employment are not the most important obstacle in our setting (see McKenzie and Woodruff [2006] for similar evidence on micro-enterprises in urban Mexico).”
Releasing Constraints to Growth or Pushing on a String? Policies and Performance of Mexican Micro-Firms (2009, result): “…in formal market institutions does not imply that agents do not acquire similar services through less formal means and, to a lesser degree, that informal alternatives are necessarily inferior to formal ones.3 It is also supported by recent evidence on Mexico by McKenzie and Woodruff (2006).”
Credit Constraints, Job Mobility, and Entrepreneurship: Evidence from a Property Reform in China (2012, background): “∂h̃ = U h Ue c [(θf ′(kcc)− r) ∂θ + f(kcc)]− (qUe c − U e h) ∂h̄ ∂θ (30)”
Taxing the Informal Economy: The Current State of Knowledge and Agendas for Future Research (2014, background): “A survey of informal micro-firms in Mexico conducted by McKenzie and Woodruff (2006) provides a possible explanation, which is echoed in the literature.”
Poverty Reduction and Growth: Virtuous and Vicious Circles (2006, neutral): “[−]: Milanovic (2000) [−]: Milanovic (2000) [−]: Kakwani and Pernia (2000); Iradian (2005) [−]: Iradian (2005) [−]: Li and Zou (2002) [+]: Dollar and Kraay (2002) [0]: Kraay (2005)”
Can Microfinance Unlock a Poverty Trap for Some Entrepreneurs? (2019, background): “McKenzie and Woodruff (2006) argue that fixed costs of starting a business do not appear to constrain Mexican microentrepreneurs.”
Does formality improve micro-firm performance? Evidence from the Brazilian SIMPLES program (2011, background): “What is it about becoming registered that is driving this? One possibility is suggested by recent experimental work byMcKenzie and Woodruff (2008) in Mexico who find that releasing constraints on credit yields outsized returns of 20 to 33% per month.”
Do Interest Rates Matter? Credit Demand in the Dhaka Slums (2012, background): “McKenzie and Woodruff (2006) give evidence from Mexico that shows no signs of non-convexities in production for small-scale entrepreneurs.”