Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/47891 
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dc.contributor.authorMcCulloch, Neilen
dc.contributor.authorSchulze, Günther G.en
dc.contributor.authorVoss, Janinaen
dc.date.accessioned2010-11-18-
dc.date.accessioned2011-07-11T10:08:21Z-
dc.date.available2011-07-11T10:08:21Z-
dc.date.issued2010-
dc.identifier.urihttp://hdl.handle.net/10419/47891-
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 consists of non-farm rural enterprises, most of them microenterprises, and analyze the effect of formalization on tax payments, corruption, access to credit and revenue, taking into account the endogeneity of the formalization decision to such benefits and costs. We show, contrary to most of the literature, that formalization reduces tax and corruption payments. The benefits of formalization, 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|aUniversity of Freiburg, Department of International Economic Policy (iep) |cFreiburg i. Br.en
dc.relation.ispartofseries|aDiscussion Paper Series |x13en
dc.subject.jelO17en
dc.subject.jelO18en
dc.subject.ddc330en
dc.subject.keywordformalizationen
dc.subject.keywordrural developmenten
dc.subject.keywordrural investment climateen
dc.subject.keywordinformal sectoren
dc.titleWhat determines firms' decisions to formalize? Evidence from rural Indonesia-
dc.typeWorking Paperen
dc.identifier.ppn640162673en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:fre:wpaper:13en

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