
Abstract
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.
Item Type: | Paper |
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Keywords: | imperfect input and capital markets, the virtual economy, trade credit, trust, contract enforcement |
Faculties: | Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > B5 - Weltwirtschaftliche Integration und die neue Firmenorganisation Economics Economics > Chairs > Chair of International Economics |
Subjects: | 300 Social sciences > 330 Economics |
JEL Classification: | D20, G30, O10, P30 |
URN: | urn:nbn:de:bvb:19-epub-13473-6 |
Language: | English |
Item ID: | 13473 |
Date Deposited: | 10. Jul 2012, 13:11 |
Last Modified: | 04. Nov 2020, 12:53 |