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The Development and Performance of the Bankruptcy System in Contemporary Russia

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  • Katsumi FUJIWARA

    (Osaka University of Foreign Studies, Japan)

Abstract

This paper investigates the working of the Russian bankruptcy system. The Russian bankruptcy system does not succeed in accelerating the withdrawal of inefficient enterprises from the market or reinforcing payment discipline. However, this is not entirely due to the faults of the bankruptcy system. A large share of debt owed to the state and the large influence of the state as an owner of strategic enterprises seriously distort a functioning of the bankruptcy system. Besides, the high rate of loss-making enterprises and the resistance of regional governments make the bankruptcy system difficult to work more effectively. Although these conditions are basically originated in state control of the economy under the Soviet Union, the Russian government also deliberately exploits its position as a creditor or an owner in relation to a lot of enterprises. All these conditions are characteristics peculiar to Russia, than common to transition countries.

Suggested Citation

  • Katsumi FUJIWARA, 2005. "The Development and Performance of the Bankruptcy System in Contemporary Russia," The Journal of Comparative Economic Studies (JCES), The Japanese Society for Comparative Economic Studies (JSCES), vol. 1, pages 59-78, July.
    • Handle: RePEc:cos:epaper:v:1:y:2005:p:59-78
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    File URL: http://www.kier.kyoto-u.ac.jp/~ces/jces/01_jces_2005/07_Fujiwara.pdf
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    References listed on IDEAS

    as
    1. John Bonin & Mark E. Schaffer, 1999. "Revisiting Hungary's Bankruptcy Episode," CERT Discussion Papers 9906, Centre for Economic Reform and Transformation, Heriot Watt University.
    2. Lubom??r L??zal, 2002. "Determinants of Financial Distress: What Drives Bankruptcy in a Transition Economy? The Czech Republic Case," William Davidson Institute Working Papers Series 451, William Davidson Institute at the University of Michigan.
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    Cited by:

    1. Iwasaki, Ichiro, 2014. "Global financial crisis, corporate governance, and firm survival:," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 178-211.
    2. Masahiro TOKUNAGA, 2005. "Enterprise Restructuring in the Context of Urban Transition: Analysis of Company Towns in Russia," The Journal of Comparative Economic Studies (JCES), The Japanese Society for Comparative Economic Studies (JSCES), vol. 1, pages 79-102, July.
    3. Iwasaki, Ichiro & 岩﨑, 一郎 & イワサキ, イチロウ, 2012. "Global Financial Crisis, Corporate Governance, and Firm Survival: The Case of Russia," RRC Working Paper Series 37, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    4. Iwasaki, Ichiro & 岩﨑, 一郎, 2013. "Global Financial Crisis, Corporate Governance, and Firm Survival: The Russian Experience," RRC Working Paper Series 37_v2, Russian Research Center, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    Russia; Transition; Bankruptcy system;
    All these keywords.

    JEL classification:

    • K49 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Other
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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