EIB Working Paper 2021/04 - Aggregate productivity slowdown in Europe

Using firm balance sheet data, this paper shows the impact of credit constraints on allocative efficiency and productivity growth. Allocative efficiency is the extent to which resources, including labour, are distributed to firms with the highest growth prospects, or “stuck” in less productive firms...

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Ngā kaituhi matua: Wolski, Marcin, Maurin, Laurent
Hōputu: Online
Reo:Ingarihi
I whakaputaina: European Investment Bank 2021
Ngā marau:
Urunga tuihono:OCN: 1269099089
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author Wolski, Marcin
Maurin, Laurent
author_browse Maurin, Laurent
Wolski, Marcin
author_facet Wolski, Marcin
Maurin, Laurent
author_sort Wolski, Marcin
collection Directory of Open Access Books
description Using firm balance sheet data, this paper shows the impact of credit constraints on allocative efficiency and productivity growth. Allocative efficiency is the extent to which resources, including labour, are distributed to firms with the highest growth prospects, or “stuck” in less productive firms. This paper uses firm balance sheet data to analyse the role of financial constraints in the relatively muted post-crisis rebound in productivity in 2014-17, compared to previous upturns in Europe. It shows that the level of financial leverage played an important role in explaining the change in aggregate productivity growth in Europe between 2004 and 2017. Focusing on Northern and Western Europe, it also shows that the productivity potential could not be fully exploited due to constraints on access to credit. It estimates that reducing collateral bottlenecks could more than double the effectiveness of financial leverage in spurring productivity growth in this region between 2014-17.
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publishDate 2021
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publisherStr European Investment Bank
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spelling doab-20.500.12854ir-713372025-07-30T14:38:10Z EIB Working Paper 2021/04 - Aggregate productivity slowdown in Europe Wolski, Marcin Maurin, Laurent European Investment Bank Business & Economics Finance thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry Using firm balance sheet data, this paper shows the impact of credit constraints on allocative efficiency and productivity growth. Allocative efficiency is the extent to which resources, including labour, are distributed to firms with the highest growth prospects, or “stuck” in less productive firms. This paper uses firm balance sheet data to analyse the role of financial constraints in the relatively muted post-crisis rebound in productivity in 2014-17, compared to previous upturns in Europe. It shows that the level of financial leverage played an important role in explaining the change in aggregate productivity growth in Europe between 2004 and 2017. Focusing on Northern and Western Europe, it also shows that the productivity potential could not be fully exploited due to constraints on access to credit. It estimates that reducing collateral bottlenecks could more than double the effectiveness of financial leverage in spurring productivity growth in this region between 2014-17. 2021-07-16T02:01:58Z 2021-07-16T02:01:58Z 2021-07-15T03:30:51Z 2021 book OCN: 1269099089 https://library.oapen.org/handle/20.500.12657/50074 9789286150357 https://directory.doabooks.org/handle/20.500.12854/71337 eng open access image/jpeg image/jpeg image/jpeg image/jpeg image/jpeg Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International Attribution-NonCommercial-NoDerivatives 4.0 International https://library.oapen.org/bitstream/20.500.12657/50074/1/9789286150357.pdf https://library.oapen.org/bitstream/20.500.12657/50074/1/9789286150357.pdf https://library.oapen.org/bitstream/20.500.12657/50074/1/9789286150357.pdf https://library.oapen.org/bitstream/20.500.12657/50074/1/9789286150357.pdf https://library.oapen.org/bitstream/20.500.12657/50074/1/9789286150357.pdf European Investment Bank European Investment Bank https://doi.org/10.2867/795159 https://doi.org/10.2867/795159 feca012f-a3d8-4aac-95aa-b6cf4bdbed7c 9789286150357 Knowledge Unlatched (KU) KU Open Services European Investment Bank open access
spellingShingle Business & Economics
Finance
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
Wolski, Marcin
Maurin, Laurent
EIB Working Paper 2021/04 - Aggregate productivity slowdown in Europe
title EIB Working Paper 2021/04 - Aggregate productivity slowdown in Europe
title_full EIB Working Paper 2021/04 - Aggregate productivity slowdown in Europe
title_fullStr EIB Working Paper 2021/04 - Aggregate productivity slowdown in Europe
title_full_unstemmed EIB Working Paper 2021/04 - Aggregate productivity slowdown in Europe
title_short EIB Working Paper 2021/04 - Aggregate productivity slowdown in Europe
title_sort eib working paper 2021 04 aggregate productivity slowdown in europe
topic Business & Economics
Finance
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
topic_facet Business & Economics
Finance
thema EDItEUR::K Economics, Finance, Business and Management::KF Finance and accounting::KFF Finance and the finance industry
url OCN: 1269099089
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