Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/37418 
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dc.contributor.authorSchulze, Günther G.en
dc.contributor.authorMcCulloch, Neilen
dc.contributor.authorVoss, Janinaen
dc.date.accessioned2010-08-11T08:53:25Z-
dc.date.available2010-08-11T08:53:25Z-
dc.date.issued2010-
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
dc.language.isoengen
dc.publisher|aVerein für Socialpolitik |cFrankfurt a. M.en
dc.relation.ispartofseries|aBeiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Developing Countries and Globalization |xG4-V4en
dc.subject.jelO17en
dc.subject.jelO18en
dc.subject.jelH26en
dc.subject.ddc330en
dc.subject.keywordFormalizationen
dc.subject.keywordrural developmenten
dc.subject.keywordrural investment climateen
dc.titleWhat Determines Firms' Decisions to Formalize? - Empirical Evidence from Rural Indonesia-
dc.typeConference Paperen
dc.identifier.ppn65594088Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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