Risks, Privatization and Interenterprise Arrears in Transition Economies

Posted: 18 May 2000

See all articles by Se-Jik Kim

Se-Jik Kim

International Monetary Fund (IMF)

Goohoon Kwon

International Monetary Fund (IMF)

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

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

Se-Jik Kim (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Goohoon Kwon

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-8433 (Phone)
202-589-8433 (Fax)

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