Determinants of Barter in Russia: An Empirical Analysis

By Christian Mumssen, Irina Dolinskaya, Simon Commander, Irina Tytell

August 1, 2000

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Christian Mumssen, Irina Dolinskaya, Simon Commander, and Irina Tytell. Determinants of Barter in Russia: An Empirical Analysis, (USA: International Monetary Fund, 2000) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Subject: 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

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/155
Stock No:

WPIEA1552000
ISBN:

9781451857306
ISSN:

1018-5941

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