Fulfilling the Export Potential of Small and Medium Firms

Fulfilling the Export Potential of Small and Medium Firms addresses the question, `How can economic policy contribute to a strong export performance by small and medium enterprises (SMEs) in developing countries?' In today's increasingly integrated world

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Fulfilling the Export

Potential of Small and Medium Firms by

BRIANLEVY World Bank

ALBERT BERRY University of Toronto

JEFFREY B. NUGENT University of Southern California

with

JOSE FRANCISCO ESCANDON MOTOSHIGE ITOH UNSUKIM SHUJlRO URATA

SPRINGER SCIENCE+BUSINESS MEDIA, LLC

Library of Congress Cataloging-in-Publication Data Levy, Brian. Fulfilling the export potential of small and medium firms / by Brian Levy, Albert Berry, Jeffrey B. Nugent ; with Jose Francisco Escandon ... [et al.]. p. cm. Includes bibliographical references and index. ISBN 978-1-4613-7354-4 ISBN 978-1-4615-5169-0 (eBook) DOI 10.1007/978-1-4615-5169-0 1. Exports-Developing countries. 2. Small business-Developing countries. 3. Foreign trade promotion-Developing countries. 4. Developing countries-Commercial policy. 1. Berry, R. Albert. II. Nugent, Jeffrey B. III. Title. HF1413.lA73 1999 98-51684 382' .6'091724-dc21 CIP Copyright c 1999 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers in 1999 Softcover reprint ofthe hardcover lst edition 1999 AII rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher, Springer Science+Business Media, LLC Printed on acid-free paper.

TABLE OF CONTENTS

List of Contributors Acknowledgments

vii ix

1. Supporting the Export Activities of Small and Medium Enterprise (SME) Brian Levy, Albert Berry and Jeffrey B. Nugent

2. Technical, Marketing and Financial Support for Indonesia's Small and Medium Industrial Exporters

31

Albert Berry and Brian Levy

3. The Support System for Small and Medium Exporters in Japan

73

Motoshige Itoh and Shujiro Urata

4. Korean SMEs and Their Support Mechanisms Linsu Kim and Jeffrey B. Nugent S. Colombia's Small and Medium Exporters and Their Support System

115

169

Albert Berry and Jose Francisco Escandon

6. Comparative Analysis of SME Support Systems Brian Levy, Albert Berry and Jeffrey B. Nugent

221

7. Implications for Theory, Policy and Future Research

261

Jeffrey B. Nugent, Albert Berry and Brian Levy

References

277

Index

289

CONTRIBUTORS

ALBERT BERRY Professor of Economics, University of Toronto, Toronto, Ontario, Canada JOSE FRANCISCO ESCANDON Consultant, Bogota, Colombia BRIAN B. LEVY World Bank, Washington, D.c', U.S.A.

LINSU KIM School of Business Administration, Korea University, Seoul, Korea JEFFREY B. NUGENT Professor of Economics, University of Southern California, Los Angeles, California MOTOSHIGE ITOH Professor of Economics, University of Tokyo, Tokyo, Japan

SHUJIRO URATA Professor of Economics, School of Social Sciences, Waseda University, Tokyo, Japan

ACKNOWLEDGMENTS

This study was initiated by the World Bank, which covered the costs of Brian Levy's time and hosted a conference in February 1994 ("Can Intervention Work? The Role of Government in SME Success") and other meetings at which the research methodology and