It is well known that informality is linked to small-scale production, low investment in new technologies, and poor incentives for human capital accumulation. Additionally, a prominent feature of large service segments, such as education and health, is a lack of or limited competition among providers, lowering incentives to seek efficiency.
On the other hand, one must find possible reasons as to why manufacturing has not registered more robust labor productivity growth. It might be the case that the opening up to foreign competition has taken many years and until recently allowed a certain degree of protection, especially from competition with countries not covered by free trade agreements.