The Effect of Economic Growth Rate Uncertainty on Financing Small and Medium Enterprises in Iran
Today, small and medium-sized enterprises (SMEs) play a key role in both developing and developed economies. However, the uncertainty of macroeconomic indicators, such as economic growth, may affect financing and investment of the SMEs in an economy. The present study explores the effect of the econ...
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| Format: | Article |
| Language: | English |
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University of Sistan and Baluchestan
2020-06-01
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| Series: | International Journal of Business and Development Studies |
| Subjects: | |
| Online Access: | https://ijbds.usb.ac.ir/article_5437_047a541f1a08aafcd382a4dc162a27cd.pdf |
| _version_ | 1797803291236630528 |
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| author | Davoud Safi Dastjerdi Seyed Komeil Tayebi Nasser Elahi |
| author_facet | Davoud Safi Dastjerdi Seyed Komeil Tayebi Nasser Elahi |
| author_sort | Davoud Safi Dastjerdi |
| collection | DOAJ |
| description | Today, small and medium-sized enterprises (SMEs) play a key role in both developing and developed economies. However, the uncertainty of macroeconomic indicators, such as economic growth, may affect financing and investment of the SMEs in an economy. The present study explores the effect of the economic growth rate uncertainty on financing SMEs in Iran. To this end, the study has applied the Brownian motion approach to calculate the uncertainty of the economic growth rate. The study has also considered relevant data of the Iranian SMEs compiled by the Comprehensive Database of All Listed Companies (CODAL). We have examined the SMEs with less than 100 employees throughout 2011-2017. The empirical results show that the effect of the economic growth rate uncertainty on the selected Iranian SMEs financing has been negative and statistically significant, while it seems an effective challenge to such firms in order to finance their productive investment.JEL Classification:D81, G21, L25, E43. |
| first_indexed | 2024-03-13T05:19:38Z |
| format | Article |
| id | doaj.art-db95dfe3d95d45378a8febc6cd567b42 |
| institution | Directory Open Access Journal |
| issn | 2538-3302 2538-3310 |
| language | English |
| last_indexed | 2024-03-13T05:19:38Z |
| publishDate | 2020-06-01 |
| publisher | University of Sistan and Baluchestan |
| record_format | Article |
| series | International Journal of Business and Development Studies |
| spelling | doaj.art-db95dfe3d95d45378a8febc6cd567b422023-06-15T16:56:25ZengUniversity of Sistan and BaluchestanInternational Journal of Business and Development Studies2538-33022538-33102020-06-01121577110.22111/ijbds.2020.54375437The Effect of Economic Growth Rate Uncertainty on Financing Small and Medium Enterprises in IranDavoud Safi Dastjerdi0Seyed Komeil Tayebi1Nasser Elahi2Ph.D. Candidate in Economics, Mofid UniversityProfessor of Economics, University of IsfahanAssociate Professor, Mofid UniversityToday, small and medium-sized enterprises (SMEs) play a key role in both developing and developed economies. However, the uncertainty of macroeconomic indicators, such as economic growth, may affect financing and investment of the SMEs in an economy. The present study explores the effect of the economic growth rate uncertainty on financing SMEs in Iran. To this end, the study has applied the Brownian motion approach to calculate the uncertainty of the economic growth rate. The study has also considered relevant data of the Iranian SMEs compiled by the Comprehensive Database of All Listed Companies (CODAL). We have examined the SMEs with less than 100 employees throughout 2011-2017. The empirical results show that the effect of the economic growth rate uncertainty on the selected Iranian SMEs financing has been negative and statistically significant, while it seems an effective challenge to such firms in order to finance their productive investment.JEL Classification:D81, G21, L25, E43.https://ijbds.usb.ac.ir/article_5437_047a541f1a08aafcd382a4dc162a27cd.pdfeconomic growth ratefinanceiransmesuncertainty |
| spellingShingle | Davoud Safi Dastjerdi Seyed Komeil Tayebi Nasser Elahi The Effect of Economic Growth Rate Uncertainty on Financing Small and Medium Enterprises in Iran International Journal of Business and Development Studies economic growth rate finance iran smes uncertainty |
| title | The Effect of Economic Growth Rate Uncertainty on Financing Small and Medium Enterprises in Iran |
| title_full | The Effect of Economic Growth Rate Uncertainty on Financing Small and Medium Enterprises in Iran |
| title_fullStr | The Effect of Economic Growth Rate Uncertainty on Financing Small and Medium Enterprises in Iran |
| title_full_unstemmed | The Effect of Economic Growth Rate Uncertainty on Financing Small and Medium Enterprises in Iran |
| title_short | The Effect of Economic Growth Rate Uncertainty on Financing Small and Medium Enterprises in Iran |
| title_sort | effect of economic growth rate uncertainty on financing small and medium enterprises in iran |
| topic | economic growth rate finance iran smes uncertainty |
| url | https://ijbds.usb.ac.ir/article_5437_047a541f1a08aafcd382a4dc162a27cd.pdf |
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