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SMEs and Regional Economic Growth in Brazil

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  • Túlio A. Cravo

    ()
    (Dept of Economics, Loughborough University)

  • Adrian Gourlay

    ()
    (Dept of Economics, Loughborough University)

  • Bettina Becker

    ()
    (Dept of Economics, Loughborough University)

Abstract

This paper examines the relationship between the Small and Medium Enterprise (SME) sector and economic growth for an annual panel of Brazilian states for the period 1985-2004. We investigate the importance of the relative size of the SME sector measured by the share of the SME employment in total formal employment and the level of human capital in SMEs measured by the average years of schooling of SME employees. The empirical results indicate that the relative importance of SMEs is negatively correlated with economic growth, a result that is consistent with previous studies examining developing countries. In addition, our results also show that human capital embodied in SMEs may be more important for economic growth than the relative size of the SME sector.

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Bibliographic Info

Paper provided by Department of Economics, Loughborough University in its series Discussion Paper Series with number 2010_01.

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Date of creation: Jan 2010
Date of revision: Jan 2010
Handle: RePEc:lbo:lbowps:2010_01

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Web page: http://www.lboro.ac.uk/departments/sbe/research/economics/index.html
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Keywords: Firm size; market structure; economic growth; human capital.;

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References

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Cited by:
  1. Békés, Gábor & Muraközy, Balázs, 2012. "Magyar gazellák. A gyors növekedésű vállalatok jellemzői és kialakulásuk elemzése
    [Hungarian gazelles: what makes a high-growth firm in Hungary?]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(3), pages 233-262.

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