EUROPEAN SMES AND ECONOMIC GROWTH: A FIRM SIZE CLASS ANALYSIS

Daniela Rodica SILIVESTRU

Abstract


This paper explores the role of micro, small and medium size enterprises in the growth of per capita gross domestic product at European Union level between 2005 and 2010. Using a panel of data from 25 Member States the results show a positive connection between the prevalence of SME in terms of created value added and GDP per capita growth. When investigating the aforementioned relationship at enterprise size class level the results differ considerably. While microenterprises prevalence it terms of created value added does not appear to cause more growth in per capita income at EU level, small and medium sized enterprises are some of the main drivers of the annual per capita GDP growth.

Full text: PDF

Keyword(s)


: SMEs, economic growth, firm size, European Union

JEL Codes


L11, L25,

References


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