One little doggy running around island (4)

I believe the answer is:

bali

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'island' is the definition.
(Bali is an example)

'one little doggy running around' is the wordplay.
'one' becomes 'i' (roman numeral).
'little doggy running' becomes 'lab' (I can't explain this - if you can you should give a lot more credence to this answer).
'around' is a reversal indicator.
'i'+'lab'='ilab'
'ilab' backwards is 'BALI'.

Can you help me to learn more?

(Other definitions for bali that I've seen before include "Indonesian island, east of Java" , "Middle East country" , "Bail out of the island" , "Javanese island" , "Island in Indonesia" .)

I've seen this clue in The Independent.

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