SME Development, Inclusive Growth, and Poverty Alleviation in Bangladesh
Islam, Mohammad Mohidul | June 2020
Abstract
The massive involvement of SMEs in economic development is considered one of the important prerequisites for inclusive growth in developing countries. This paper aims to assess the performance of SMEs towards economic development in Bangladesh based on the research question of whether SMEs have a significant influence on economic growth and the alleviation of poverty. Annual time-series data from 1996 to 2017 have been used to carry out the empirical analysis. The econometric analysis has been performed employing OLS and 2SLS techniques to investigate the impact of SMEs on economic growth and poverty alleviation. The results of the empirical analyses show that there is an economic linkage between SME development, economic growth, and the incidence of poverty. Even though such empirical relationships are not found to be statistically well justified, an increase in the percentage share of SMEs expansion has a positive effect on economic growth, which in turn, can alleviate poverty in Bangladesh. The findings of the study suggest that in light of economic theory, SME development is implicitly essential for ensuring inclusive growth and consequent poverty alleviation.
Citation
Islam, Mohammad Mohidul. 2020. SME Development, Inclusive Growth, and Poverty Alleviation in Bangladesh. © Bangladesh Institute of Development Studies. http://hdl.handle.net/11540/14697.Keywords
Poverty Analysis
Participatory Poverty Assessment
Poverty Reduction Strategy
Extreme Poverty
Economic development
Growth And Poverty
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
SMEs
Small business development
Development Indicators
Environmental Indicators
Economic Indicators
Educational Indicators
Demographic Indicators
Health Indicators
Income Distribution
Income Distribution
Demographic Indicators
Social Justice
Price stabilization
Food prices
Price policy
Development Indicators
Environmental Indicators
Economic Indicators
Educational Indicators
Demographic Indicators
Health Indicators
Disadvantaged Groups
Low Income Groups
Socially Disadvantaged Children
Social change
Social accounting
Inequality of income
Economic growth
Quality of Life
Open price system
Price fixing
Price regulation
Consumer price indexes
Poor
Economic forecasting
Economic Zones
Health expectancy
Social groups
Political participation
Distribution of income
Developing countries
Rural community development
Mass society
Social policy
Social stability
Population
Sustainable development
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