## Determinants of Barter in Russia: An Empirical Analysis

_IMF Working Papers, August 1, 2000_

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**Canonical URL:** [Determinants of Barter in Russia: An Empirical Analysis](https://www.imf.org/en/publications/wp/issues/2016/12/30/determinants-of-barter-in-russia-an-empirical-analysis-3790)

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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

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### 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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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/determinants-of-barter-in-russia-an-empirical-analysis-3790_