Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161452
Authors: 
Amornkitvikai, Yot
Harvie, Charles
Year of Publication: 
2016
Series/Report no.: 
ADBI Working Paper Series 576
Abstract: 
This study sheds light on small and medium-sized enterprise (SME) financing and its performance in Thailand. It elaborates on the key sources of finance existing for Thai manufacturing SMEs and their importance for SME performance as measured by technical efficiency, export performance, and technological innovation. This study also examines the key factors enhancing SME access to external finance. Our results confirm that retained earnings are crucial to increase SME technical efficiency, but loans from unlicensed moneylenders deteriorate their export performance. For external finance, government-owned specialized financial institutions (SFIs) play a leading role in enhancing SME technical efficiency and export performance, but the results from the survey reveal that few Thai manufacturing SMEs actively seek external finance from these institutions. Foreign commercial banks also help enhance SME technical efficiency. The results show that larger SMEs have superior performance as measured by export performance and technological innovation performance. The results also reveal that financial institutions in Thailand still rely on collateral-based lending and SME financial transparency through audited financial statements to reduce asymmetric information and adverse selection costs.
Subjects: 
Thailand
manufacturing
SME
specialized financial institution
exports
export performance
technical efficiency
technology
innovation
market access
human resources
credit
financing
banks
business loans
collateral
interest rate
JEL: 
D22
D24
G20
L25
L60
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

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