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dc.contributor.authorMcCulloch, Neilen_US
dc.contributor.authorSchulze, Günther G.en_US
dc.contributor.authorVoss, Janinaen_US
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 non-farm rural enterprises in six Indonesian districts and analyze in an IV approach the effect of formalization on tax payments, corruption, access to credit and revenue. We take firm heterogeneity into account and show how the effect of formalization depends on firm characteristics such as firm size, education and ethnicity of the owner. We identify firm and owner characteristics that make formalization more likely.en_US
dc.publisherVerein für Socialpolitik, Ausschuss für Entwicklungsländer Göttingenen_US
dc.relation.ispartofseriesProceedings of the German Development Economics Conference, Frankfurt a.M. 2009 32en_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
Appears in Collections:Proceedings of the German Development Economics Conference, 2009 (Frankfurt a.M.)

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