Resource title

Russia?s Debt Crisis and the Unofficial Economy

Resource image

image for OpenScout resource :: Russia?s Debt Crisis and the Unofficial Economy

Resource description

Russia's foreign debt problems worsened substantially after the financial crisis of 1998. The paper focuses on the key role of the government in servicing foreign debt and promoting institution building by showing how foreign debt influences the choice between official and unofficial taxation. The enterprise sector is assumed to reallocate its resources between domestic investment and capital flight. It is discussed under which conditions debt rescheduling may create incentives for the government to promote institution building. The results of this paper shed light on the conditions under which the recent agreement with the London Club to write off substantial amounts of former Soviet debt can be successful.

Resource author

Mechthild Schrooten, Lusine Lusinyan, Ralph P. Heinrich, Claudia M. Buch

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/17916

Resource license

Adapt according to the presented license agreement and reference the original author.