In the United States and around the world, awareness of the effects of regulation on innovation and entrepreneurship is increasing. The regulatory environment determines “a certain coding for action, a coding that signals whether various acts are permitted (even required) or prohibited,...

This paper analyzes the relationship between formal sector subcontracting and the evolution of the informal sector using nationally representative survey data of Indian manufacturing enterprises for the period 1995-2006. In these years of fast economic growth, subcontracting by formal...