Abstract
A number of studies have tried to explain SME and how they affect economic growth. These studies have mainly taken the role of SME as an engine of economic growth but connected with perfection of the market and institutional role. While various skeptics question the efficiency of SME and their role speaking in favor of large firms (Biggs, 2002). While many studies have assessed the importance of micro SME in economic growth just in the process of industrialization (Snodgrass and Biggs, 1996). Beck, Demirguc-Kunt and Levine (2005) provide the first evidence on the links between SME, economic growth and poverty reduction, using a new database compiled by Ayyagari, Beck and Demirguc-Kunt (2003). According to their per capita GDP growth and employment in manufacturing report from SME, show a strong positive correlation during the 1990-s. DOI: 10.5901/ajis.2015.v4n3s1p460
Highlights
An obvious study of the rules of the political game and institutional scheme
Regressions applied clearly and detailed are controling the opposite of causal relationship and simultaneous bias or prejudice, in the relationship between SME and economic growth
This stability does not mean that governments should not be changed, because in this case Italy would be developed over the past 60 years, but it means setting clear rules of the political game
Summary
Regressions applied clearly and detailed are controling the opposite of causal relationship and simultaneous bias or prejudice, in the relationship between SME and economic growth. The results do not necessarily lead to the conclusion that SME do not bring economic growth. They fail to reject the hypothesis that certainly SME do not show a causal effect on the growth of GDP per capita. This conclusion is consistent with the view that a large sector of SME is a characteristic of fast-growing economies, but not because of their rapid growth. Political stability should be defined first and one of the areas where such ambiguity is what we mean by sustainability and political security
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