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Periodical article |
| Title: | Nature and Determinants of the Linkages between Informal and Formal Sector Enterprises in Nigeria |
| Author: | Arimah, Ben C. |
| Year: | 2001 |
| Periodical: | African Development Review |
| Volume: | 13 |
| Issue: | 1 |
| Period: | June |
| Pages: | 114-144 |
| Language: | English |
| Geographic term: | Nigeria |
| Subjects: | informal sector private enterprises Development and Technology Economics and Trade |
| External link: | https://onlinelibrary.wiley.com/doi/10.1111/1467-8268.00033/pdf |
| Abstract: | Nigeria's informal sector has both backward and forward linkages with the formal sector. Backward linkages include the flow of raw materials, equipment, finance and consumer goods from the formal to the informal sector. The major sources of backward linkages are government agencies, large domestic companies and foreign-based companies. Forward linkages entail the flow of goods and services from informal sector enterprises as input into the formal sector production process. Two major types of forward linkages are identified: subcontracting agreements and the supply of consumer goods. On average, forward linkages are much lower than backward linkages. Registration of the informal enterprise, annual income of the entrepreneur and education of employees are among the main factors accounting for the extent of both backward and forward linkages with the formal sector. The extent of backward linkages is further linked to level of investment, number of employees and entrepreneur's previous work experience, while investment expended to date, level of profitability and vocational training further account for the extent of forward linkages. Nigeria's structural adjustment programme does not appear to have enhanced informal-formal sector linkages. Analysis is based on data collected between June and August 1995 from a sample of informal sector enterprises in six urban centres: Lagos, Ibadan, Kano, Suleja, Aba and Nnewi. Bibliogr., sum. in English and French. |