SME Policy and Firms’ Productivity in Latin America

Very little is known about the effectiveness of SME policies, and a careful look at thestructure, mechanisms and incentives provided by these policies suggest caution in theirimplementation and, most importantly, the need to carefully and closely monitor their results.This paper relies on the microeconometric analysis of a homogeneous dataset of sixteenLatin American and Caribbean countries to analyze the magnitude and determinants of theproductivity gap between large and SME firms and to simulate of the impact on productivity ofvarious policy scenarios....