SME Financial Inclusion for Sustained Growth in the Middle East and Central Asia
IMF Working Papers, September 27, 2019
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- SME Financial Inclusion for Sustained Growth in the Middle East and Central Asia
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Bibliographic details
- Authors: Mishel Ghassibe, Maximiliano Appendino, Samir Elsadek Mahmoudi
- Published: September 27, 2019
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513509112.001
Overview and authorship
- Title: SME Financial Inclusion for Sustained Growth in the Middle East and Central Asia
- Authors: Mishel Ghassibe, Maximiliano Appendino, Samir Elsadek Mahmoudi
- Publication type: IMF Working Papers
- Date: September 27, 2019
- Series: Working Paper No. 2019/209
- Issue: 209
- Volume: 2019
- Pages: 23
- DOI: https://doi.org/10.5089/9781513509112.001
- Stock No: WPIEA2019209
- ISBN: 9781513509112
- ISSN: 1018-5941
Key empirical findings
- Greater financial inclusion of small and medium enterprises (SMEs) can promote higher economic growth and employment, especially in the Middle East and Central Asia regions.
- Countries with higher SME financial inclusion exhibit more effective monetary policy transmission and tax collection.
- At the firm level, access to credit yields substantial employment and labor productivity growth gains, with these gains being higher for SMEs.
- Improved credit bureau coverage and insolvency regimes have a substantial positive impact on SME employment and labor productivity growth.
- Cross-country aggregate evidence confirms employment and growth gains from SME financial inclusion, which appear larger in the Middle East and Central Asia than in other regions.
Subject areas and keywords
- Subjects: Economic sectors; Employment; Financial inclusion; Financial markets; Labor; Labor productivity; Production; Productivity; Small and medium enterprises
- Keywords: Economic Growth; Employment; employment growth; Financial Inclusion; growth gain; Labor productivity; labor productivity gain; Middle East and Central Asia; monetary policy transmission; output gap; Productivity; Small and medium enterprises; Small and Medium Sized Enterprises; SME employment; SME financial inclusion; SME Financial inclusion index; WP
Policy-relevant implications (as reported)
- Enhancing SME access to credit is associated with higher employment and labor productivity growth at the firm level, with disproportionate benefits for SMEs.
- Strengthening credit bureau coverage and improving insolvency regimes can materially increase SME employment and labor productivity growth.
- Improving SME financial inclusion can strengthen macroeconomic policy transmission (monetary policy) and fiscal outcomes (tax collection), supporting broader growth objectives in the Middle East and Central Asia.
IMF Working Paper No. 2019/209 (Mishel Ghassibe, Maximiliano Appendino, Samir Elsadek Mahmoudi), September 27, 2019.
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