%0 Report
        %A Coricelli, Fabrizio
%A Driffield, Nigel
%A Pal, Sarmistha
%A Roland, Isabelle
        %T Excess Leverage and Productivity Growth in Emerging Economies: Is There A Threshold Effect?
        %D 2010
        %8 2010 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4834
        %U https://www.iza.org/publications/dp4834
        %X The paper examines the relationship between leverage and growth in a group of emerging central and eastern European countries, who are at different levels of financial market development. We hypothesize a non-linear relationship in that moderate leverage could boost growth while very high leverage could lower it by increasing the likelihood of financial distress and bankruptcy. Estimates of a Threshold model confirm the non-linear relationship in our sample, after controlling for various firm, industry and financial market characteristics. We also endogenously determine a threshold level of leverage beyond which further increases in leverage could lower TFP growth.
        %K bank efficiency
%K market capitalization
%K TFP growth
%K Threshold model
%K non-linear relationship
%K excess leverage
%K transition experience