Business climate and firm exit in developing countries: evidence from Nigeria

Orjiakor, Ebuka Christian

doi:10.1186/s43093-022-00160-6

Future Business Journal

Table 1 Indicators used in generating the business constraints index. N = 1157

From: Business climate and firm exit in developing countries: evidence from Nigeria

Indicator code/unit	No. of firms (%)	Item-test correlation
Electricity: takes the value of 1 if electricity is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	83.66	0.2460
Telecommunication: takes the value of 1 if telecommunication is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	7.87	0.3096
Transportation: takes the value of 1 if transportation is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	31.89	0.4327
Custom and trade regulation: takes the value of 1 if custom and trade regulation is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or non-existent difficulty	5.013	0.2481
Tax administration: takes the value of 1 if tax administration is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	28.09	0.5522
Tax rate: takes the value of 1 if the tax rate is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	35.35	0.4925
Business licensing: takes the value of 1 if the tax rate is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	17.72	0.4296
Political instability: takes the value of 1 if political instability is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	16.68	0.4016
Corruption: takes the value of 1 if corruption is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	32.50	0.4976
Crime, theft, and disorder: take the value of 1 if crime, theft, or disorder is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small or nonexistent difficulty	23.51	0.4406
Courts: takes the value of 1 if the court system is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	10.46	0.3063
Access to land: takes the value of 1 if access to land is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	23.34	0.3973
Labor regulation: takes the value of 1 if labor regulation is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	7.78	0.3481
Competitors in the informal sector: takes the value of 1 if the activity of informal competitors is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	17.46	0.3670
Access to finance: takes the value of 1 if access to finance is a severe or extremely severe obstacle to the firm's existing activities, and 0 if it is a moderate, small, or nonexistent difficulty	51.08	0.4232
Test scale:		0.6213

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