RT info:eu-repo/semantics/article
T1 Macroeconomic lockdown and SMEs: the impact of the COVID-19 pandemic in Spain
A1 Pedauga Sánchez, Luis Enrique
A1 Sáez Trujillo, Francisco José
A1 Delgado Márquez, Blanca L.
A2 Economia Aplicada
K1 Economía
K1 Estadística
K1 Covid-19
K1 SMEs
K1 Macroeconomic lockdown
AB [EN] The relative importance of small- and mediumsizedenterprises (SMEs) and large firms is a recurrenttopic in the small business economics literature. Thispaper presents a real and financial social accounting matrix(FSAM) capable of distinguishing the direct andindirect effects that are transferred from micro-, small,medium, and large firms to the rest of the economy. Weuse the hypothetical extraction method (HEM) to explorethe sequence of reactions associated with shocks that arisefrom the COVID-19 lockdown. Using a structural modelfor the Spanish economy, we identify the role of differentfirm size categories in the aggregate gross domestic product(GDP). Our results allow us to reconcile the mixednarrative that accompanies the evaluation of the roleplayed by these categories in economic activity by revealingthat both SMEs and large firms are important forsupporting economic activity. In particular, SMEs helpexplain 43% of the income and two-thirds of the unemploymentdecline caused by the COVID-19 pandemic.Our findings also show the importance of conditioningSME industrial policy to sectoral analysis.Plain English summary The effects of the macroeconomiclockdown and its transmission to the rest of theeconomy differ by firm size and across sectors. Usingthe Spanish context for micro-, small, medium, andlarge firms, we distinguish the direct and indirect effectscaused by the COVID-19 pandemic. The main implicationsare the following: (1) Research: results emphasizethat SMEs and large firms are both important to supporteconomic activity but, in order to account for the relativeeffects on SMEs, it is crucial to consider the specificsector that receives the disruption. 2) Policy: SMEs arean important focus of business support policies withinthe EU. According to our estimations, disruptions inSMEs produce larger reductions in demand. These resultscould support credit policies for SMEs with astrong impact on the aggregate economy due to theirgreater productive and financial linkages with the domesticeconomy.
PB Springer
SN 0921-898X
LK https://hdl.handle.net/10612/19941
UL https://hdl.handle.net/10612/19941
NO Pedauga, L., Sáez, F., y Delgado-Márquez, B. L. (2022). Macroeconomic lockdown and SMEs: the impact of the COVID-19 pandemic in Spain. Small Business Economics, 58(2), 665–688. https://doi.org/10.1007/S11187-021-00476-7/TABLES/6.
DS BULERIA. Repositorio Institucional de la Universidad de León
RD 05-jun-2024