On the Dynamics of Small and Medium-Sized Enterprises: Evidence from Japan
Kazuo Yamada; Izidin El Kalak; Hidenori Takahashi | March 2018
Abstract
The main objective of this paper is to understand how the changes in the macroeconomic conditions (the global financial crisis) relate to the investment and financial decision-making for each of the different size categories of SMEs. To do so, we use a large dataset of 764,963 observations in Japan for the time period from 2006 to 2014. This large size of dataset enables us to understand the heterogeneity of SMEs on the financing and investment decision-making: such as the size, industry, and region. Our findings are of particular importance to regulators because they show that SMEs are dynamic in nature where they change their financial behavior in response to any macroeconomic shock. In addition, we report differences among the different size subsample at the sales growth and state/industry GDP growth levels; hence, this requires the design of a unique set of regulations for each group accordingly to properly enhance the growth potential for each group and for SMEs as a whole. Moreover, these findings have implications on lenders especially banks to treat each size group within SMEs differently while lending or assessing creditworthiness.
Citation
Kazuo Yamada; Izidin El Kalak; Hidenori Takahashi. 2018. On the Dynamics of Small and Medium-Sized Enterprises: Evidence from Japan. © Asian Development Bank Institute. http://hdl.handle.net/11540/8098.Keywords
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Results-Based Monitoring And Evaluation
Project Evaluation & Review Technique
Project Evaluation
Program Evaluation
Performance Evaluation
Operations Evaluation
Evaluation Methods
Evaluation
Social condition
Economic dependence
Economic assistance
International monetary relations
International monetary relations
International trade
National accounting
Market
Project impact
Development projects
Program management
Performance appraisal
Project appraisal
Technology assessment
Exchange
Comparative economics
Index number
Monetary policy
Value analysis
Adjustment cost
Transaction cost
Conditionality
International relations
Cumulative effects assessment
Grievance procedures
Participatory monitoring and evaluation
Exchange rate
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