01834cas a2200241 a 4500 AALejournalIMF014460 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498303590 1018-5941 BD-DhAAL BD-DhAAL Klein, Nir. Small and Medium Size Enterprises, Credit Supply Shocks, and Economic Recovery in Europe / Nir Klein. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The limited access to bank credit in recent years has increased the pressure on small and medium size enterprises (SMEs), forcing them to scale down investment plans and production. This paper, which explores the macroeconomic implications of this channel, finds evidence that countries with high prevalence of SMEs tended to recover more slowly from the global financial crisis than their peers, implying that the interaction of the economic structure and access to bank financing plays a critical role in episodes of economic recovery. This conclusion is reinforced by a VAR estimation, which demonstrates that a negative credit supply shock applied to SMEs has an adverse effect on economic activity, and this impact is amplified in countries that have a high share of SMEs. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2014/098 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/098/001.2014.issue-098-en.xml IMF e-Library