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Drivers of SME Growth

Quantile Regression Evidence From Developing Countries

Bibliographic Data

ID4182167
AuthorsAysa Ipek Erdogan (0000-0002-8653-9271, Bogaziçi University, corresponding author)
Year2023
Volume13
Issue1
Publication date2023-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/21582440231163479
OpenAlexW4361983727
LanguageEN
References cited65

This study explores the determinants of firm growth rate for small and medium-sized enterprises (SMEs) in different quantiles of the conditional growth rate distribution using data from World Bank Enterprise Surveys (WBES) covering 80 developing and emerging markets. It contributes to the literature by providing evidence of the effects of insufficiently investigated factors on firm growth. It also examines the impacts on firm growth of certain factors for which there is conflicting empirical evidence. Our quantile regression results show that firm age is negatively associated with firm growth rate throughout the entire distribution, except the lower tail. Firm size has a negative effect on growth rate in the upper tail of the distribution. We also find that the industry experience of the top manager positively impacts the growth rate only in the upper-middle range of the distribution. Product innovation positively affects firm growth rate from the lower-middle range to the highest quantile of the growth distribution. Additionally, we provide evidence that process innovation has a positive relationship with growth in the middle quantiles. SMEs that see access to financing as a more severe obstacle to their operations have lower growth rates throughout almost the entire growth distribution

Business · Demographic economics · Econometrics · Economics · Emerging markets · Empirical evidence · Growth rate · Macroeconomics · Quantile · Quantile regression · Corporate Finance and Governance · Entrepreneurship Studies and Influences · Firm Innovation and Growth · Mathematics

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