MSME Promotion, Inequality and Decentralized Wealth Creation: A Strategic Policy Perspective

Saransh Royal (), Kamaljit Singh and Ramesh Chander ()
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Saransh Royal: University School of Management, Kurukshetra University, Haryana, India
Kamaljit Singh: ��University School of Business, Chandigarh University, Mohali, India
Ramesh Chander: University School of Management, Kurukshetra University, Haryana, India

Journal of International Commerce, Economics and Policy (JICEP), 2023, vol. 14, issue 03, 1-22

Abstract: The study aims to ascertain the impact of micro, small and medium enterprises (MSMEs) growth on wealth creation and its distribution in India concerning macroeconomic variables such as GDP (Gross Domestic Product) per capita, unemployment, Foreign direct investment (FDI), human development index (HDI) and the urban population (URP). The research has examined the underlying short-term association using ECM, FMOLS, DOLS and CCR to estimate the long-run association between the identified variables. It documents a positive relationship between the share of the B50 populace and the FDI. On the other hand, per capita GDP, in the long run, had a negative association with MSME share, URP and HDI. Similarly, for the top 10 percentile (T10) share, there was a positive relationship between MSME share and URP. Therefore, the results document a decentralized wealth creation for an MSME-focused development strategy in the short run to address skewed wealth creation in emerging societies.

Keywords: MSMEs promotion; wealth creation; income inequality; poverty alleviation (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1142/S1793993323500163

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