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SMEs, Growth, and Poverty

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  • Thorsten Beck
  • Asli Demirgüç-Kunt

Abstract

This paper explores the relationship between the relative size of the Small and Medium Enterprise (SME) sector, economic growth, and poverty alleviation using a new database on the share of SME labor in the total manufacturing labor force. Using a sample of 45 countries, we find a strong, positive association between the importance of SMEs and GDP per capita growth. The data do not, however, confidently support the conclusions that SMEs exert a causal impact on growth. Furthermore, we find no evidence that SMEs alleviate poverty or decrease income inequality.

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Bibliographic Info

Paper provided by The World Bank in its series World Bank Other Operational Studies with number 11278.

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Date of creation: Feb 2004
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Handle: RePEc:wbk:wboper:11278

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Keywords: Private Sector Development - Small and Medium Size Enterprises Finance and Financial Sector Development - Microfinance Poverty Reduction - Poverty Assessment Governance - Governance Indicators Poverty Reduction - Achieving Shared Growth;

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References

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Citations

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Cited by:
  1. Allen, Franklin & Chakrabarti, Rajesh & De, Sankar & Qian, Jun “QJ” & Qian, Meijun, 2012. "Financing firms in India," Journal of Financial Intermediation, Elsevier, Elsevier, vol. 21(3), pages 409-445.
  2. Guner, Nezih & Ventura, Gustavo & Xu, Yi, 2007. "Macroeconomic Implications of Size-Dependent Policies," CEPR Discussion Papers 6138, C.E.P.R. Discussion Papers.
  3. Philipp D. Koellinger & A. Roy Thurik, 2012. "Entrepreneurship and the Business Cycle," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 1143-1156, November.
  4. Lskavyan, Vahe & Spatareanu, Mariana, 2008. "Host country's governance and the size of foreign investors," Economics Letters, Elsevier, vol. 100(2), pages 258-261, August.
  5. Chung-Hua Shen & Haumin Chu & Yu-Chun Wang, 2012. "Who Furls the Umbrella on Rainy Days? The Role of Bank Ownership Type and Bank Size in SME Lending," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., M.E. Sharpe, Inc., vol. 48(0), pages 184-199, July.
  6. Friedman, Felice B. & Grose, Claire, 2006. "Promoting access to primary equity markets : a legal and regulatory approach," Policy Research Working Paper Series 3892, The World Bank.
  7. Stijn Claessens, 2006. "Access to Financial Services: A Review of the Issues and Public Policy Objectives," World Bank Research Observer, World Bank Group, World Bank Group, vol. 21(2), pages 207-240.
  8. Mojica, Maribel N. & Gebremedhin, Tesfa G. & Schaeffer, Peter V., 2009. "An Empirical Analysis Of The Link Between Entrepreneurship And Economic Growth In West Virginia," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46723, Southern Agricultural Economics Association.
  9. Richard Black & Adriana Castaldo, 2009. "Return Migration And Entrepreneurship In Ghana And C�Te D'Ivoire: The Role Of Capital Transfers," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 100(1), pages 44-58, 02.
  10. Alexander Coad & Jagannadha Pawan Tamvada, 2008. "The Growth and Decline of Small firms In Developing Countries," Papers on Economics and Evolution 2008-08, Philipps University Marburg, Department of Geography.
  11. Esther K. Ishengoma & Robert Kappel, 2008. "Business Constraints and Growth Potential of Micro and Small Manufacturing Enterprises in Uganda," GIGA Working Paper Series 78, GIGA German Institute of Global and Area Studies.

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