||**Table 1: Variable Description**|
|---|---|
|Variable|Description|
|Inform|Dependent binary variable. Indicates whether or not a financially unconstrained<br>enterprise relies exclusively on informal finance, or uses some formal finance.<br>Variable takes on a value of 1 if the former is the case and 0 if the enterprise uses<br>formal finance.<br>Source: WorldBank Enterprise Surveys (www.enterprisesurveys.org<br>).|
|Br-common|Subjective categorical variable capturing enterprise perception of whether it is<br>common to pay informal payments/gifts to get things done with regard to customs,<br>taxes, licenses and regulation. Scale of variable is 1-4, with 4 being associated with<br>strong agreement. Mean taken at sub-national level. Higher values indicate more<br>corruption.<br>Source: WorldBank Enterprise Surveys (www.enterprisesurveys.org<br>)|
|Br-taxmtg|Mean of a binary variable on whether or not a gift or informal payment was actually<br>requested at a meeting with a tax official. 1 indicates ‘Yes’ 0 indicates ‘No’ not true<br>2==No. Variable aggregated at the sub-national level. Higher values indicate more<br>corruption.<br>Source: WorldBank Enterprise Surveys (www.enterprisesurveys.org<br>)|
|Br-govcon|Subjective categorical variable capturing enterprise perception on whether its<br>common to pay bribes to obtain government contracts. Scale of variable is 1-6, with<br>6 indicating ‘Always necessary.’ Mean taken at sub-national level. Higher values<br>indicate that bribe payments more common.<br>Source:WorldBank EnterpriseSurveys(wwwenterprisesurveysorg<br>)|
|Br-safeinsp|..<br><br>Subjective categorical variable capturing enterprise perception on whether its<br>common to pay bribes occupational health and safety inspections. Scale of variable<br>is 1-6, with 6 indicating ‘Always necessary.’ Mean taken at sub-national level.<br>Higher values indicate that bribe payments more common.<br>Source: WorldBank Enterprise Surveys (www.enterprisesurveys.org<br>)|
|Br-fireinsp|Subjective categorical variable capturing enterprise perception on whether its<br>common to pay bribes during fire inspections. Scale of variable is 1-6, with 6<br>indicating ‘Always necessary.’ Mean taken at sub-national level. Higher values<br>indicate that bribe payments more common.<br>Source: WorldBank Enterprise Surveys (www.enterprisesurveys.org<br>)|
|Br-taxinsp|Subjective categorical variable capturing enterprise perception on whether its<br>common to pay bribes to deal with taxes and tax collection. Scale of variable is 1-6,<br>with 6 indicating ‘Always necessary.’ Mean taken at sub-national level. Higher<br>values indicate that bribe payments more common.<br> <br>|
||Source: WorldBank Enterprise Surveys (www.enterprisesurveys.org<br>)|
|Br-convalue|Percent of contract value typically paid in additional or informal payments or gifts<br>to secure a contract when doing business with the government. Mean taken at sub-<br>national level.Highervaluesindicatemore corruption.|
|Taxpay|Taxpay is a country level variable that measures the number of tax payments per<br>country, standardized to reflect the total number of taxes paid, the method of<br>payment, frequency of payment and no. of agencies involved. Variable is anchored<br>by an enterprise’s perception of tax administration as a constraint (subjective<br>categorical variable, capturing an enterprise’s assessment of tax administration as a<br>constraint to doing business. Scale of 1-4, with 4 indicating a severe constraint).<br>Higher values indicate tax administration is more problematic.<br>Source: World Bank Doing Business Indicators(www.doingbusiness.org<br>)and<br>WorldBank EnterpriseSurveys(www.enterprisesurveys.org<br>).|
|Taxtime|<br><br>This indicator is a country level variable that measures the time to prepare, file and<br>pay (or withhold) three major types of taxes: corporate income tax, value added or<br>sales tax and labor taxes, including payroll and social security contributions.<br>Variable is anchored by an enterprise’s perception of tax administration as a<br>constraint (subjective categoricalvariable, capturing anenterprise’s assessment of|

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