Explain the large number of informal firms in mexico

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Assignment:

According to Santiago Levy (the current Executive Vice President of the Inter American Development Bank), Mexico is poor because of badly designed social institutions. What social institutions does he refer to and how are they badly designed? How does the bad design explain the large number of informal firms in Mexico? If Santiago Levy's argumentis correct, what would you see in terms of the difference in productivity between formal andinformal firms in Mexico?

Reference no: EM133717630

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