The Effect of SMEs on Economic Growth: The Case of Thailand

Small and medium-sized enterprise (SMEs) have a crucial role in Thailand's economy, both financially and socially, introducing them as a key strategic actor in the country's economy. In this study, we analyzed the possible impact of credits to SMEs (LNSMECR) on Thailand's long-term economic growth (LNGDP). In order to evaluate this possible connection, we included real interest rate (LNIR) and money supply (M2) in our model of economic growth in Thailand. The analysis drew on a sample of data collected quarterly between 2013 Q1 and 2022 Q3. The ARDL framework by Pesaran et al. (2001) was utilized in this study. In long-term, LNSMECR and LNGDP were found to move together.