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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.

Suggested Citation

  • Túlio A. Cravo & Adrian Gourlay & Bettina Becker, 2010. "SMEs and Regional Economic Growth in Brazil," Discussion Paper Series 2010_01, Department of Economics, Loughborough University, revised Jan 2010.
  • Handle: RePEc:lbo:lbowps:2010_01
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    Citations

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    Cited by:

    1. Ricardo Carvalho De Andrade Lima & Raul Da Mota Silveira Neto, 2016. "Physical And Human Capital And Brazilian Regional Growth: A Spatial Econometric Approach For The Period 1970-2010," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42ndd Brazilian Economics Meeting] 164, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. 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.
    3. Gille, Véronique, 2015. "Distribution of human capital and income: An empirical study on Indian States," Journal of Macroeconomics, Elsevier, vol. 43(C), pages 239-256.
    4. Tulio Cravo & Caio Piza, 2016. "The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low -and Middle- Income Countries: A Meta-Analysis," IDB Publications (Working Papers) 94938, Inter-American Development Bank.
    5. repec:kap:sbusec:v:49:y:2017:i:3:d:10.1007_s11187-017-9851-0 is not listed on IDEAS
    6. Jose Claudio Linhares Pires & Tulio Cravo & Simon Lodato & Caio Piza, 2013. "Industrial Clusters and Economic Performance in Brazil," IDB Publications (Working Papers) 4771, Inter-American Development Bank.
    7. Massón-Guerra, José Luis & Ortín-Angel, Pedro, 2014. "Entrepreneurship Capital and Regional Productivity Revisited," MPRA Paper 57470, University Library of Munich, Germany.
    8. repec:eee:touman:v:46:y:2015:i:c:p:419-430 is not listed on IDEAS
    9. J. G. Sri Ranjith, 2015. "The Effect of Microenterprises on Poverty: A Cross-county Analysis on US Urban Poverty," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(3), pages 128-150, March.
    10. Anil Rupasingha & Stephan J. Goetz, 2013. "Self-employment and local economic performance: Evidence from US counties," Papers in Regional Science, Wiley Blackwell, vol. 92(1), pages 141-161, March.

    More about this item

    Keywords

    Firm size; market structure; economic growth; human capital.;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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