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Bankruptcy Systems And Economic Performance Across Contries: Some Empirical Evidence

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  • 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

Suggested Citation

  • Marianna Succurro, 2008. "Bankruptcy Systems And Economic Performance Across Contries: Some Empirical Evidence," Working Papers 200801, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    • Handle: RePEc:clb:wpaper:200801
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    File URL: http://www.ecostat.unical.it/RePEc/WorkingPapers/WP01_2008.pdf
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    References listed on IDEAS

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    1. Janda, Karel & Rakicova, Anna, 2014. "Corporate Bankruptcies in Czech Republic, Slovakia, Croatia and Serbia," MPRA Paper 54109, University Library of Munich, Germany.

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    More about this item

    Keywords

    Bankruptcy Law; Enforcement; Investments; Economic Performance;
    All these keywords.

    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, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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