The role of institutional risk in Algerian SME development: Empirical study | ASJP

أبعاد إقتصادية
Volume 14, Numéro 1, Pages 533-548
2024-06-30

The Role Of Institutional Risk In Algerian Sme Development: Empirical Study

Authors : Hammache Soraya . Leghima Amina .

Abstract

The development of the SME sector is becoming a major preoccupation for certain countries, particularly in the developing countries. This article aims to understand the influence of institutional risk on the development of SMEs in Algeria. We have applied the ARDL approach from 1999 to 2021. The results suggest that the institutional environment has a significant influence on the development of SMEs in the country. Improving socio-economic conditions will lead to the development of SMEs in Algeria. Corruption is another factor that significantly explains the growth of SMEs. The results show that there is a positive relationship between corruption and SMEs.

Keywords

Institutional risk, SME’s, Corruption, Socio-economic condition, ARDL, Algeria

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