Risks, Privatization and Interenterprise Arrears in Transition Economies
Posted: 18 May 2000
Abstract
The rapid accumulation and persistence of interenterprise credits and arrears is a fairly common phenomenon in transition economies, posing serious policy concerns. A general equilibrium model of production chains is presented to analyze this phenomenon and provide policy implications. The model shows that high business risks inherent in transition economies and massive privatization could well explain the phenomenon, and that the government's efforts to eliminate the arrears are most likely to fail.
JEL Classification: D50, E52, P34, P51
Suggested Citation: Suggested Citation
Kim, Se-Jik and Kwon, Goohoon, Risks, Privatization and Interenterprise Arrears in Transition Economies. Economic Systems, Vol. 23, No. 3, Available at SSRN: https://ssrn.com/abstract=191299
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