Beyond Sanctions: Unpacking Growth Moderators for Iranian MSMEs

30 Pages Posted: 13 Jan 2024

See all articles by Iman Cheratian

Iman Cheratian

Academic Center for Education, Culture and Research (ACECR)

Saleh Goltabar

Academic Center for Education, Culture, and Research (ACECR), Tarbiat Modares University, Tehran, Iran

Date Written: December 23, 2023

Abstract

This paper examines the relationship between international sanctions and sales growth in Micro, Small, and Medium Enterprises (MSMEs) in Iran. Based on data from 486 enterprises across five provinces, our study demonstrates a negative association between economic sanctions and sales growth in Iranian MSMEs. Conversely, we find that firms' access to external financing, technology, managerial education, and new employment has positive and significant effects on their growth. Additionally, we observe that firms' aging and labor adjustment have negative impacts on the sales growth of MSMEs. Finally, the study suggests that firms that have received financing and benefited from required technology and managerial education may have mitigated the negative impacts of international sanctions on their growth. However, the adverse effects of sanctions on growth are more pronounced for firms facing obstacles in accessing external finance.

Keywords: Sanction, Access to finance, MSMEs, Sales growth, Technology, Iran

JEL Classification: D22, F51, G21, O14

Suggested Citation

Cheratian, Iman and Goltabar, Saleh, Beyond Sanctions: Unpacking Growth Moderators for Iranian MSMEs (December 23, 2023). Available at SSRN: https://ssrn.com/abstract=4674116 or http://dx.doi.org/10.2139/ssrn.4674116

Iman Cheratian (Contact Author)

Academic Center for Education, Culture and Research (ACECR) ( email )

No 1270, Enghelab Avenue
Tehran, 14155
Iran

Saleh Goltabar

Academic Center for Education, Culture, and Research (ACECR), Tarbiat Modares University, Tehran, Iran ( email )

No 1270, Enghelab Avenue
Tehran, 14155
Iran

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