FINANCIAL DEVELOPMENT AND ROMANIAN SMES
Research has shown that financial development accelerates economic growth but little has been discussed about the disproportionate effect a country’s financial development has on the growth of its small firms. With this in mind we propose a panel data analysis of the Romanian SMEs over the period 20...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Nicolae Titulescu University Publishing House
2011-04-01
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| Series: | Challenges of the Knowledge Society |
| Subjects: | |
| Online Access: | http://cks.univnt.ro/uploads/cks_2011_articles/index.php?dir=02_economy%2F&download=cks_2011_economy_art_062.pdf |
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| Summary: | Research has shown that financial development accelerates economic growth but little has been discussed about the disproportionate effect a country’s financial development has on the growth of its small firms. With this in mind we propose a panel data analysis of the Romanian SMEs over the period 2002-2008. The results show that financial development exerts a positive effect on small firms relative to large ones. The analysis is based on data regarding: (a) the relative size of Romanian small and medium size enterprises (SMEs) in sectors like: industry, trade and services (calculated as the share of value added by different size class SMEs in total country’s value added); (b) each sector’s employment share and (c) Romania’s level of financial development. |
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| ISSN: | 2068-7796 |