Businesses of this sort account for around a third of jobs and private-sector GDP, have a manufacturing and export bent (though less so in Britain) and combine the benefits of small-firm flexibility with large-firm economies of scale.
Together, they employ over 40m people in the country and account for around one-third of private-sector GDP (equivalent to the economies of India and Russia combined).In this section Unhappy families Why doesn't France have a Mittelstand?
Let's also give special thanks to our 60 million small business workers who account for half of our private-sector labor force and produce 45percentt of our private-sector GDP.
Bank deposits % of GDP, GDP growth (annual %) and Bank credit to private sector with GDP (annual %) has been used as a proxy of Bank deposit, Economic growth and Bank's credit respectively.
These are domestic credit provided by banking sector of GDP), shortly denoted by CRD, domestic credit to private sector of GDP), shortly denoted by CRBAN and finally money and quasi money.
Further he concluded that there is no causal relationships exist between bank credits to private sector and GDP growth rate in long run or short run.
To this end, Table 2 presents regressions with Credit to Private Sector to GDP ratio as the relevant measure of financial development.
Other than informal sector size, other factors that seem to be robustly correlated with credits to private sector are GDP per-capita, current account balance, capital output ratio, corruption control and law and order indices.
