Growth, and Poverty Cross-Country Evidence THORSTEN BECK.docx

Growth, and Poverty Cross-Country Evidence THORSTEN BECK.docx

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Growth, and Poverty: Cross-Country Evidence THORSTEN BECK To Purchase This Material Click below Link http://www.tutorialoutlet.com/all-miscellaneous/growth- and-poverty-cross-country-evidence-thorsten-beck FOR MORE CLASSES VISIT www.tutorialoutlet.com Growth, and Poverty: Cross-Country Evidence THORSTEN BECK The World Bank, 1818 H Street NW, Washington D.C. 20433 ASLI DEMIRGUC-KUNT The World Bank, 1818 H Street NW, Washington D.C. 20433 ROSS LEVINE Department of Economics, Brown University, 64 Waterman Street, Providence RI 02912, The NBER 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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Keywords: Firm size, market structure, economic development JEL classifications: O1, O2, L11, L25 1. Introduction To accelerate growth and reduce poverty, the World Bank Group and other international aid agencies provide targeted assistance to small and medium size enterprises (SMEs) in developing economies. For example, the World Bank Group
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