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| Author: | Ayyagari, M. Beck, T. Demirguc-Kunt, A. |
| Title: | Small and medium enterprises across the globe |
| Journal: | Small business economics
2007 : DEC, VOL. 29:4, p. 415-434 |
| Index terms: | business environment informal economy small and medium-sized enterprises (SMEs) |
| Language: | eng |
| Abstract: | This study explores the relationship between the relative size of small and medium enterprise (SME) sector and the business environment. This relationship is analyzed in 76 countries using a new cross-country database including consistent and comparable information on the SME sector's contribution to employment in manufacturing and GDP. In addition, the significance of SMEs and the informal economy are linked with indicators of different aspects of business environment. The results suggest that a number of dimensions of the business environment, e.g. better credit information sharing, are related to a larger size of the SME sector, whereas high exit costs are related to a larger informal economy. |
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