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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Financial Dependence and Economic Growth in Spain
Author(s)
Lamothe, P., Fernández, M. A., Ríos, M.
Full-Text PDF
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DOI:10.17265/1537-1506/2012.10.006
Affiliation(s)
Lamothe, P., Professor, Departamento de Financiación e Investigación Comercial, Universidad Autónoma de Madrid.
Fernández, M. A., Lecturer, Departamento de Finanzas y Contabilidad, Universidad de Málaga.
Ríos, M., Lecturer, Departamento de Finanzas y Contabilidad, Universidad de Málaga.
ABSTRACT
The authors intend to contribute in this paper towards a debate on the consequences of external financing needs of small and medium enterprises (SMEs) regarding its economic growth. The authors’ research differs for using like proxy of external financing dependence of SMEs the flows of investments that cannot be financed with generated cash flows. The results thus obtained show that financial dependence accounts for economic growth of SMEs, and that there are other variables of control of significance such as those of financial development. The authors present evidence on better soundness achievement about conclusions pertaining to SMEs if they obtained results emerge from independent sub-sectors in SMEs, especially in those countries with a higher percentage of small-sized companies, which do not answer in the same way to the considered model.
KEYWORDS
small and medium enterprises (SMEs), economic growth, financial development, Spain
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