Small and medium-sized manufacturing enterprises in Latin America and the Caribbean under the new economic model

This paper describes the performance of small and medium-sized manufacturin g enterprises (SMEs) in 10 Latin American countries under the New Economic Model (NEM). Based on an original databank, the authors analyze SME perform ance in relation to production, employment and productivity, and in compari son to larger enterprises. The paper shows that SMEs have not been marginal players under the NEM; they did not experience a generalized drop in produ ction and employment, and, in some countries, even increased their producti vity relative to that of larger firms. Macroeconomic conditions have been t he main determinants of SME performance; trade liberalization had a strong impact on sectoral restructuring within SME production, but did not affect negatively SMEs as a whole. (C) 2000 Elsevier Science Ltd. All rights reser ved.