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 analyze the effect of...

The literature on transition economies devotes relatively attention to agriculture and the rural non-farm economy, despite the importance of the sector and its importance to the livelihoods of the majority of the worlds poor. This paper is part of growing volume of valuable empirical work on...