Law in Transition and Development: The Case of Russia

Arbeitspapier

The rise of barter and non-cash payments has become a dominant feature of the Russian transition to a market economy. This paper confronts with empirical evidence two approaches to explain barter in Russia: the 'illusion view' and the 'trust view' of barter. The 'illusion view' suggests that barter allows the parties to pretend that the manufacturing sector in Russia is producing value added by enabling this sector to sell its output at a higher price than its market value. The 'trust view' sees barter as an institution to deal with the absence of trust and liquidity in the Russian economy. We confront the prediction of both explanations with actual data on barter in Ukraine in 1997. The data reject the 'illusion view'€˜ in favor of the '€˜trust view'€˜ of barter.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB/TR 15 Discussion Paper ; No. 78

Classification and Topics

• Classification: Wirtschaft ; Production and Organizations: General ; Corporate Finance and Governance: General ; Economic Development: General ; Socialist Institutions and Their Transitions: General
• Subject: imperfect input and capital markets ; the virtual economy ; trade credit ; trust ; contract enforcement

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Marin, Dalia
• Event: Veröffentlichung
• (who): Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
• (where): München
• (when): 2004

Further information

• DOI: doi:10.5282/ubm/epub.13473
• Handle: http://hdl.handle.net/10419/93788
• URN: urn:nbn:de:bvb:19-epub-13473-6
• Last update: 20.09.2024, 8:25 AM CEST