What Determines Firms’ Decisions to Formalize?

Preprint OPEN
Neil McCulloch; Günther G. Schulze; Janina Voss;
  • Subject: Formalization, rural development, rural investment climate, informal sector
    • jel: jel:O18 | jel:O17

In 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 ... View more
  • References (5)

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    Schneider, Friedrich (2005) Shadow Economies around the World: What do we really know?, European Journal of Political Economy 21(3): 598-642.

    Schulze, Günther G. and Susanne Quadros (2007): Report on the Results of the Rural Investment Climate Assessment (RICA) in Indonesia 2006. University of Freiburg, mimeo.

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