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dc.contributor.authorSchulze, Günther G.en_US
dc.contributor.authorMcCulloch, Neilen_US
dc.contributor.authorVoss, Janinaen_US
dc.date.accessioned2010-08-11T08:53:25Z-
dc.date.available2010-08-11T08:53:25Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/37418-
dc.description.abstractIn this paper we analyze the decision of small and micro firms to formalize, i.e. to obtain business and other licenses in rural Indonesia. We use the rural investment climate survey (RICS) that comprises around 2500 nonfarm rural enterprises in six Indonesian districts and analyze the effect of formalization on tax payments, corruption, access to credit and revenue, taking into account the endogeneity of the formalisation decision to such benefits and costs. We show that, contrary to some of the literature, formalisation reduces tax and corruption payments. However, the benefits of formalisation, and therefore the likelihood of being formal, also depend on characteristics such as firm size, as well as the education and ethnicity of the owner.en_US
dc.language.isoengen_US
dc.publisherVerein für Socialpolitik Frankfurt a. M.en_US
dc.relation.ispartofseriesBeiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Developing Countries and Globalization G4-V4en_US
dc.subject.jelO17en_US
dc.subject.jelO18en_US
dc.subject.jelH26en_US
dc.subject.ddc330en_US
dc.subject.keywordFormalizationen_US
dc.subject.keywordrural developmenten_US
dc.subject.keywordrural investment climateen_US
dc.titleWhat Determines Firms' Decisions to Formalize? - Empirical Evidence from Rural Indonesiaen_US
dc.typeConference Paperen_US
dc.identifier.ppn65594088X-
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie

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