Determinants of Barter in Russia : An Empirical Analysis

Author/Editor:

Christian Mumssen ; Irina Dolinskaya ; Simon Commander ; Irina Tytell

Publication Date:

August 1, 2000

Electronic Access:

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Summary:

This paper analyzes the causes and consequences of non-monetary transactions in Russia, drawing on a large enterprise survey. We show that barter and offsets are linked to liquidity problems at the level of the firm and to arrears in particular. We find evidence that the state has channeled implicit subsidies to enterprises in the form of tax and utility offsets. The findings help explain the rise of non-monetary transactions during much of the 1990s. We show that non-monetary transactions inhibit enterprise restructuring. Our findings suggest that a policy solution to the non-cash problem would require the state and public utilities to phase out arrears and offsets.

Series:

Working Paper No. 00/155

Subject:

English

Publication Date:

August 1, 2000

ISBN/ISSN:

9781451857306/1018-5941

Stock No:

WPIEA1552000

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

33

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