- Log In/Sign Up
- P-ISSN2765-6934
- E-ISSN2765-7027
- KCI
ISSN : 2765-6934
A Study on the Mutual Effect between Small & Medium-sized Enterprises and Economic Growth: Evidence from Alibaba Group and City of Hangzhou
Abstract
Purpose - From the advanced path of development and current situation, the development of enterprises plays a tremendous role in promoting national economic growth and raising the overall national strength. Therefore, this paper aims at examining the mutual effect between small & medium enterprises and economic growth. Research design, data, and methodology - In order to address the operating mutual effect between the small & medium enterprises and economic growth more clearly, this paper sets Alibaba Group and Hangzhou as an example. Meanwhile, the annual data from 2000 to 2017 will be employed, and an empirical analysis will be performed under the vector error correction model. Results - The findings display that the total revenue of Alibaba Group has a positive effect on economic growth in city of Hangzhou. However, the Granger Causality test implies that there is only a unidirectional causality between total revenue of Alibaba Group and economic growth in Hangzhou. More specifically, 1% increase in total revenue of Alibaba Group can result in 0.272% in economic growth of Hangzhou in the long run. Conclusions - In summary, for the long run, the local governments should promulgate a series of policies to assist the small & medium enterprises like Alibaba Group to improve the local economic growth as seen in the city of Hangzhou.
- keywords
- Total Revenue of Alibaba Group, City of Hangzhou, Small & Medium Enterprises.
Reference
Akingunola, R. O. (2011). Small and medium scale enterprises and economic growth in Nigeria: An assessment of financing options. Pakistan Journal of Business and Economic Review, 2(1), 77-97.
Ayandibu, A. O., & Houghton, J. (2017). The role of Small and Medium Scale Enterprise in local economic development (LED). Journal of Business and Retail Management Research (JBRMR), 11(2), 133-139.
Barr, A. M. (1995). The missing factor: Entrepreneurial networks, enterprises and economic growth in Ghana (No. 1995-11). Centre for the Study of African Economies, University of Oxford.
Baptiste-Cornelis, T. H. E. R. E. S. E., & Long, W. (2009). The impact of small business enterprises on the economy of Trinidad & Tobago. Economic Impact of SBEs.
Caner, S. (2010). The role of small and medium size enterprises in economic development.
Gebremariam, G. H., Gebremedhin, T. G., & Jackson, R.W. (2004, August). The role of small business in economic growth and poverty alleviation in West Virginia: An empirical analysis. Paper presented at the American Agricultural Economics Association Annual Meeting, Denver, Colorado, August (Vol.1, No.4).
Grossmann, V. (2009). Entrepreneurial innovation and economic growth. Journal of Macroeconomics, 31(4), 602-613.
He, Y. (2018a). The impact of cross-border tourism on bilateral trade: Evidence from BRICS countries. The Journal of Economics, Marketing & Management, 6(4), 29-39.
He, Y. (2018b). A study on the dynamic relationship between cultural industry and economic growth. Journal of Asian Finance, Economics and Business, 5(4), 85-94.
He, Y., & Feng, W. (2018). A study on the determinants of social welfare: Evidence from macroeconomics. International Journal of Industrial Distribution &Business, 9(9), 7-14.
He, Y. (2018c). A study on the impact of China's monetary policy on South Korea's exchange rate. International Journal of Industrial Distribution &Business, 9(6), 17-24.
Jilenga, M. T. (2017). Social Enterprise and Economic Growth: A Theoretical Approach and Policy Recommendations. International Journal of Academic Research in Accounting, Finance and Management Sciences, 7(1), 41-49.
Kaur, G. (2017). Economic reforms and micro, small and medium enterprises. International Journal of Research-Granthaalayah, 5(5), 394-404.
Lock, R., & Lawton S. H. (2016). The impact of female entrepreneurship on economic growth in Kenya. International Journal of Gender and Entrepreneurship, 8(1), 90-96.
McIntyre, R. J. (2001). The role of small and medium enterprises in transition: Growth and entrepreneurship. UNU World Institute for Development Economics Research (UNU/WIDER).
Naudé, W. (2014). Entrepreneurship and economic development: Theory, evidence and policy. In International Development: Ideas, Experience, and Prospects. Oxford, England: Oxford University Press.
Nelson, R. E., &Johnson, S. D. (1997). Entrepreneurship education as a strategic approach to economic growth in Kenya. Journal of Industrial Teacher Education, 35, 7-21.
Oduntan, K. O. (2014). The role of small and medium enterprises in economic development: The Nigerian experience. Paper presented at International Conference on Arts, Economics and Management (ICAEM’14) (pp.75-78).
Okhankhuele, O. T. (2017). Effect of small and medium scale enterprises on economic growth in Nigeria. Journal of Research in National Development, 15(1), 8-20.
Onakoya, A. B., Fasanya, I. O., & Abdulrahman, H. D. (2013). Small and medium scale enterprises financing and economic growth in Nigeria. European Journal of Business and Management, 5(4), 78-97.
Sanyang, S. E., & Huang, W. C. (2010). Entrepreneurship and economic development: The EMPRETEC showcase. International Entrepreneurship and Management Journal, 6(3), 317-329.
- Downloaded
- Viewed
- 0KCI Citations
- 0WOS Citations