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Finance and Growth of SMEs in South Asia: Evidence from Bangladesh, Pakistan, and Sri Lanka

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  • Sharma, Palak

    (Monash University)

Abstract

This paper studies the determinants of access to finance in small and medium enterprises (SMEs) in three South Asian economies, Bangladesh, Pakistan, and Sri Lanka. The data for this study is from the World Enterprise Survey data set for each country collected by the World bank. The paper uses logistic regression for empirical analysis. Findings of this paper confirm that access to formal and informal finance is significantly determined by the size, age, and formalization of firms. The gender of the owner-manager, sales performance, location, and legal status of the firm are insignificant predictors of a firm’s ability to raise finance. Results from this paper can help governments shape policy and develop programs that can augment a firm’s ability to raise financing from formal sources.

Suggested Citation

  • Sharma, Palak, 2021. "Finance and Growth of SMEs in South Asia: Evidence from Bangladesh, Pakistan, and Sri Lanka," Warwick-Monash Economics Student Papers 10, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:10
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Economic growth ; informal finance ; SMEs ; World Enterprise survey JEL Classification: O11; O53;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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