This
paper
uses
survey
data
collected
from
Northwestern
Myanmar
to
analyze
business
activity
and
determine
the
most
binding
constraints
to
firm
growth.
Most
households
in
the
region
are
operating
informal
firms
with
low
earnings
and
no
employees.
The
most
binding
constraints
are
related
to
external
financing
and
competition.
Firms
that
view
access
to
informal
credit
as
a
major
constraint
are
9.6%
less
likely
to
invest
and
grow,
on
average,
5.7%
less
in
2008–2010.
Restricted
access
to
markets
is
also
a
major
binding
constraint,
reducing
the
likelihood
of
investment
up
to
15.3%
and
income
growth
up
to
6%