Table 2 The determinants of agrochemical...

Table 2

The determinants of agrochemical traders’ voluntary and enforced tax compliance

Variables	Probit regression		OLS regression
	Voluntary tax	Enforced tax	Voluntary tax	Enforced tax
	Compliance	Compliance	Compliance	Compliance
Demographic characteristics
Age	−0.065***	0.128**	−0.016***	0.004*
	(0.018)	(0.965)	(0.004)	(0.002)
Gender (Female = 1)	−0.340	0.749	−0.111	−0.006
	(0.368)	(1.170)	(0.108)	(0.060)
Educational level (years in school)	0.257*	−0.385	0.062	−0.022
	(0.175)	(0.383)	(0.051)	(0.028)
Economic characteristics
Tax rate	0.066	−0.467*	0.0156	−0.034***
	(0.073)	(0.246)	(0.022)	(0.012)
Sales per year	8.220*	−4.950*	1.340***	−3.250
	(2.910)	(3.390)	(4.190)	(2.330)
Trust in authorities
Respect	−0.149	0.431	−0.024	0.038
	(0.172)	(0.383)	(0.051)	(0.028)
Honesty	−0.542*	1.504*	−0.151*	0.134***
	(0.293)	(0.389)	(0.083)	(0.046)
Trustworthiness	0.458*	−1.286*	0.098	−0.101**
	(0.262)	(0.714)	(0.075)	(0.042)
Power of authorities
Expertise	0.095	0.166	0.035	0.045*
	(0.159)	(0.274)	(0.048)	(0.027)
Sanction	−0.133	1.390***	−0.032	0.155***
	(0.114)	(0.460)	(0.344)	(0.019)
Constant	1.903*	−6.220**	1.040***	−0.137
	(0.074)	(3.150)	(0.310)	(0.172)
Prob > F	0.000	0.000
R-Squared	0.329	0.7069
Prop > chi	0.000	0.000
Pseudo R²	0.314	0.817
Wald X2	(10) = 39.87	(10) = 80.74
Log pseudolikelihood	−43.639	−9.049

Variables	Probit regression		OLS regression
	Voluntary tax	Enforced tax	Voluntary tax	Enforced tax
	Compliance	Compliance	Compliance	Compliance
Demographic characteristics
Age	−0.065***	0.128**	−0.016***	0.004*
	(0.018)	(0.965)	(0.004)	(0.002)
Gender (Female = 1)	−0.340	0.749	−0.111	−0.006
	(0.368)	(1.170)	(0.108)	(0.060)
Educational level (years in school)	0.257*	−0.385	0.062	−0.022
	(0.175)	(0.383)	(0.051)	(0.028)
Economic characteristics
Tax rate	0.066	−0.467*	0.0156	−0.034***
	(0.073)	(0.246)	(0.022)	(0.012)
Sales per year	8.220*	−4.950*	1.340***	−3.250
	(2.910)	(3.390)	(4.190)	(2.330)
Trust in authorities
Respect	−0.149	0.431	−0.024	0.038
	(0.172)	(0.383)	(0.051)	(0.028)
Honesty	−0.542*	1.504*	−0.151*	0.134***
	(0.293)	(0.389)	(0.083)	(0.046)
Trustworthiness	0.458*	−1.286*	0.098	−0.101**
	(0.262)	(0.714)	(0.075)	(0.042)
Power of authorities
Expertise	0.095	0.166	0.035	0.045*
	(0.159)	(0.274)	(0.048)	(0.027)
Sanction	−0.133	1.390***	−0.032	0.155***
	(0.114)	(0.460)	(0.344)	(0.019)
Constant	1.903*	−6.220**	1.040***	−0.137
	(0.074)	(3.150)	(0.310)	(0.172)
Prob > F	0.000	0.000
R-Squared	0.329	0.7069
Prop > chi	0.000	0.000
Pseudo R²	0.314	0.817
Wald X2	(10) = 39.87	(10) = 80.74
Log pseudolikelihood	−43.639	−9.049

Note(s): NB: A dummy variable based on scores from 12 and above = 1 “voluntary compliance” and below 12 = 0 “otherwise”. A dummy variable based on scores from 12 and above = 1 “enforced compliance” and below 12 = 0 “otherwise”. The OLS model dependent variable is the addition of respondents’ scores from three questions relating to enforced compliance and voluntary compliance. Magnitude of agreement on sanction, expertise, respect, honesty and trustworthiness was measured on interval scale from 1 = total disagree to 5 = total agree

Source(s): Authors’ own from field data

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