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Small manufacturing establishments in developing countries: An empirical analysis

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  • John Weeks

Abstract

There is considerable literature on the promotion of small and medium establishments (SMEs) in developing countries. Rather little attention has been given to the long-term performance of these in the development process. This paper considers the small literature on the trends in the SMEs' contribution to manufacturing in the long run, and the more recent discussion of the effect of policy on these trends. Using considerably more data than previous studies, the paper concludes that (1) it appears that the importance of SMEs tends to decline in early stages of development (as others have suggested), but that this is reversed as countries reach middle-income status, and (2) several of the generalisations frequently made about the impact of policy variables on SMEs cannot be sustained at the country level.

Suggested Citation

  • John Weeks, 2003. "Small manufacturing establishments in developing countries: An empirical analysis," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(4), pages 339-359.
    • Handle: RePEc:taf:irapec:v:17:y:2003:i:4:p:339-359
    DOI: 10.1080/0269217032000118710
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    References listed on IDEAS

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    1. Velenchik, Ann D., 1997. "Government intervention, efficiency wages, and the employer size wage effect in Zimbabwe," Journal of Development Economics, Elsevier, vol. 53(2), pages 305-338, August.
    2. Nugent, Jeffrey B. & Nabli, Mustapha K., 1992. "Development of financial markets and the size distribution of manufacturing establishments: International comparisons," World Development, Elsevier, vol. 20(10), pages 1489-1499, October.
    3. Katrak, Homi, 1994. "Imports of technology, enterprise size and R&D-based production in a newly industrializing country: The evidence from Indian enterprises," World Development, Elsevier, vol. 22(10), pages 1599-1608, October.
    4. Hoselitz, Bert F., 1959. "Small Industry in Underdeveloped Countries," The Journal of Economic History, Cambridge University Press, vol. 19(4), pages 600-618, December.
    5. Daniels, Lisa, 1999. "The role of small enterprises in the household and national economy in Kenya: A significant contribution or a last resort?," World Development, Elsevier, vol. 27(1), pages 55-65, January.
    6. Mead, Donald C., 1994. "The contribution of small enterprises to employment growth in southern and eastern Africa," World Development, Elsevier, vol. 22(12), pages 1881-1894, December.
    7. Anderson, Dennis, 1982. "Small industry in developing countries: A discussion of issues," World Development, Elsevier, vol. 10(11), pages 913-948, November.
    8. Ranadev Banerji, 1978. "Small-scale production units in manufacturing: An International cross-section overview," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(1), pages 62-84, March.
    9. Little, I M D, 1987. "Small Manufacturing Enterprises in Developing Countries," The World Bank Economic Review, World Bank, vol. 1(2), pages 203-235, January.
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    Cited by:

    1. Burak Günalp & Seyit Cilasun, 2006. "Determinants of Entry in Turkish Manufacturing Industries," Small Business Economics, Springer, vol. 27(2), pages 275-287, October.

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