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MANUEL R. AGOSIN, RODRIGO BOLAÑOS, AND FÉLIX DELGADO
TABLE 7. 3 Degree of Restrictiveness of Eighteen Factors in Nicaragua’s Business Climate (average reply according to size of business) 2006 Variable Corruption Electricity Economic and regulatory uncertainty Economic instability Anti-competitive practices Access to financing Tax rates Crime, theft, and disorder Transport Training of workers Permissions and leaves of absence Access to the land Legal system/resolution of conflicts Regulation of customs and trade Labor regulation Tax management Cost of financing Number of firms
Small 2.67 2.49 2.35 2.03 1.84 1.41* 1.28* 1.21 0.99* 0.94* 0.79 0.71 0.69* 0.69* 0.52* — — 308
Medium 2.55 2.74 2.44 2.18 1.76 1.37 1.58 1.29 1.31 1.34 0.89 0.53 1.00* 0.92* 0.72 1.24 — 128
2003 Large 2.35 2.88 2.51 2.18 1.54 1.31 1.83 1.33 1.69 1.74 1.32 0.88 1.76 1.45 1.02 1.68 — 42
Small *
2.70 1.57* 2.46 2.39 2.20* 2.30 1.49 1.91 0.62* 0.89 0.46* 0.90 1.13* 0.39* 0.47* 0.83* 2.46 289
Medium *
2.73 2.03 2.55 2.38 2.38* 2.19 2.04 1.83 0.89* 1.40 0.95 0.99 1.91 0.95 0.73 1.27 2.51 128
Large 2.17 2.37 2.51 2.09 1.54 1.80 1.89 1.37 1.40 1.20 0.91 0.86 2.06 1.31 0.94 1.37 2.09 35
Source: World Bank (2007c, 2003 and 2006 surveys). Note: 0 indicates that the factor is not a constraint and 4 that the constraint is very important. — not available *
The average for small or medium-sized firms differs from the average for large firms at a 5 percent level of significance.
the 2006 survey), ranging from 0 for those that were not significant to 4 for those that were very important. 3 Table 7.3 presents the answers for Nicaraguan firms, classified according to size into three groups: small firms (from 1 to 20 employees); medium-sized firms (from 21 to 99 employees); and large firms (more than a 100 employees).
3 Unfortunately, one of the obstacles eliminated in the list for 2006 was the cost of credit, a factor that the entrepreneurs had identified as important in the 2003 survey. The other was telecommunications, which Nicaraguan businessmen did not mention as an important obstacle in the 2003 survey.