Leverage and productivity in emerging European economies
Firm-level data in the emerging economies of central and eastern Europe (CEE) shows that there is a positive relationship between leverage and productivity growth, but only below a certain threshold according to research published in December.
The paper, entitled "Excess leverage and productivity growth in emerging economies: is there a threshold effect?", finds that against conventional thought, many firms in the CEE economies diverge from optimal leverage, particularly in excess leverage.
"Exc
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