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Growth Factors of Small and Medium-sized Enterprises at State and Regional Level

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Constantinos Ikonomou
Constantinos Ikonomou


The present research investigates the signifi cance of various forms of capital and factors of production for SME growth in Greece, in the period before joining the Eurozone (1995-2002). A mathematical model associates SME growth with changes of features from various forms of domestic, local and regional capital and fi rm-level dummies, including fi rm size. The model is estimated using a representative sample. The fi ndings on the limited signifi cance of economic and manufacturing capital at state and regional level -especially in Attiki- are attributed to indirect causes, such as the 1999-2000 Athens Stock Exchange crash, SME increasing internationalization and the regional social, political and cultural capital. Additional fi ndings indicate substantial failures in delivering growth-oriented local and regional policies focusing on SMEs and their problems. The signifi cant association of SME growth with few forms of capital at state, regional and industrial level and with fi rm size is highlighted. The operation of a long-run economic capital-intensive accumulation process is investigated.


SME; Capital; Geography; Greece; Eurozone

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