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Bankruptcy Systems And Economic Performance Across Contries: Some Empirical Evidence

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Author Info
Marianna Succurro () (Dipartimento di Economia e Statistica, Università della Calabria)
Abstract

This paper examines the relationship between the insolvency systems and the investment share of GDP across countries. The objective is to find out the relationship between bankruptcy procedures and economic performances around the world. Empirical evidence suggests that: 1) the investment share of GDP is higher in those countries characterized by highly efficient bankruptcy system; the more efficient the insolvency procedures in terms of time, cost and recovery rate, the more readily available debt is and the higher the Investment/GDP ratio is; 2) the investment share of gross domestic product is positively associated with the degree of sophistication of the Bankruptcy Law, at least below a certain level of legal production; 3) data suggest some complementary effect between Bankruptcy Law and Enforcement for rich countries, while the interaction term indicates some substitution effect when poor countries are considered. Some policy implications conclude the work

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File URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP01_2008.pdf
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File Function: First version, 2008-12
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Publisher Info
Paper provided by Università della Calabria, Dipartimento di Economia e Statistica in its series Working Papers with number 200801.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 21 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:clb:wpaper:200801

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Postal: Università della Calabria, Dipartimento di Economia e Statistica, Ponte Pietro Bucci, Cubo 0/C, I-87036 Arcavacata di Rende, CS, Italy
Phone: +39 0984 492413
Fax: +39 0984 492421
Web page: http://www.ecostat.unical.it/
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For technical questions regarding this item, or to correct its listing, contact: (Giovanni Dodero).

Related research
Keywords: Bankruptcy Law; Enforcement; Investments; Economic Performance;

Find related papers by JEL classification:
G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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    Other versions:
  3. Oscar Couwenberg & Abe Jong, 2008. "Costs and recovery rates in the Dutch liquidation-based bankruptcy system," European Journal of Law and Economics, Springer, vol. 26(2), pages 105-127, October. [Downloadable!] (restricted)
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