Implications of informal economic groups’ responses to formal regulation: a case study of street food vendors in the Kumasi metropolis.
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Date
2015-11-05
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Abstract
Unaddressed food needs resulting from urbanisation, work pressures and increasing cost of
time has fostered an unchecked growth of private informal food retail referred to as street
food vending. To protect diverging interests of consumers and investors, formal regulation
of SFT has emerged paramount. Unconstructive and burdensome regulations, however, is a
disincentive to the growth of these enterprises. This study measures compliance burden,
determinants of extent of compliance to regulations and preference for varying regulatory
aspects and regimes. Within urban Kumasi, 309 SFVs were sampled across 8 sub-metros for
data collection using a structured questionnaire and observations. Data was analysed using
descriptive statistics, income statement and regression analysis. Compliance to regulations is
found below average among SFVs in urban Kumasi and does not necessarily follow
awareness. Most aspects of SFT regulation were negatively perceived. Whereas time cost of
compliance is significantly higher non-compliance, money cost of the latter is higher but
with smaller difference. Compliance cost is significantly high among users of prohibited
sites, improved equipment and undeveloped vending structures. Same is the case among
smaller and less viable enterprises subjected to lesser advisory and more regulatory visits as
well as punitive enforcement methods. Distance to regulator, cost of compliance, perception
of training programmes and daily length of trade activity have major influences on extent of
compliance to food safety regulations. Whereas financially viable enterprises favour a
massive overhaul of current regulatory regime, members of vendor associations support
subtle changes in some/all aspects of SFT regulation. SFVs prefer improved siting
regulations the most and improved medical certification the least. Regulatory compliance
among SFVs can be made more preferred and less costly by among other things using siting
regulations as major entry point while formally working with vendor associations and
identifiable third parties to improve perceptions of regulations.
Description
A thesis submitted to the Department of Agricultural Economics, Agribusiness and Extension, KNUST, in partial fulfilment of the requirements for the degree of Master of Philosophy in Agricultural Economics Faculty of Agriculture College of Agriculture and Natural Resources, 2015