Determinants of Barter in Russia: An Empirical Analysis

IMF Working Papers, August 1, 2000

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Determinants of Barter in Russia: An Empirical Analysis

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Bibliographic details

• Authors: Christian Mumssen, Irina Dolinskaya, Simon Commander, Irina Tytell
• Published: August 1, 2000
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451857306.001

Summary

• This paper analyzes the causes and consequences of non-monetary transactions in Russia, drawing on a large enterprise survey.
• Barter and offsets are linked to liquidity problems at the level of the firm and to arrears in particular.
• Evidence is found 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.
• Non-monetary transactions inhibit enterprise restructuring.
• The paper suggests that a policy solution to the non-cash problem would require the state and public utilities to phase out arrears and offsets.

Key Findings and Evidence

• Barter and offsets are associated with firm-level liquidity problems and arrears.
• State-provided implicit subsidies occurred via tax and utility offsets.
• Non-monetary transactions contributed to the rise of barter during much of the 1990s.
• Non-monetary transactions act as an impediment to enterprise restructuring.

Policy Implications and Recommendations

• Phase out arrears and offsets by the state and public utilities as a policy solution to the non-cash problem.

Keywords and Subjects (as listed)

• Subjects: Arrears, Asset and liability management, Bank credit, Currencies, External debt, Financial regulation and supervision, Liquidity, Liquidity risk, Money
• Keywords: arrears, Bank credit, barter, Currencies, enterprise characteristic, enterprise performance, enterprise restructuring, firm size, Global, illiquid firm, incidence of illiquidity, Inter-enterprise offset, Liquidity, liquidity problem, Liquidity risk, liquidity-constrained firm, loss-making firm, networking behavior, non-monetary transactions, restructuring, Russia, sample firm, subsidies, tax arrears, tax offsets, trade credit, transition, WP

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• Determinants of Barter in Russia: An Empirical Analysis - WP/00/155
  • Determinants of Barter in Russia: An Empirical Analysis - WP/00/155 (Markdown version)
  • Determinants of Barter in Russia: An Empirical Analysis - WP/00/155 (PDF)