This paper analyzes non-monetary transactions (NMTs) in Russia during the 1990s. This work introduces the topic and provides a rather extensive review of the overall economic, political and legal situations. After a definition of the instruments and markets of NMTs, and a summary of the possible causes for NMTs, these causes are reviewed through empirical analyses. Based on identified causes of NMTs, an attempt is made to characterize the structure of non-monetary markets using attributes of financial markets. Market description is followed by the discussion of effects on the economy. The paper is concluded with a comparison to other countries and the most recent available information about NMTs in Russia.
Major results of this paper include an attempt of description and characterization of the markets of NMTs. Up to this point, mostly causes, their empirical evidence and their effects have been debated, without identifying any market structure. Further, empirical evidence to support theoretical causes is summarized and critically reviewed.
Inhaltsverzeichnis (Table of Contents)
- Preamble
- Table of Contents
- Abbreviations
- Index of Figures
- Index of Tables
- Abstract
- Zusammenfassung
- Introduction
- 1 Economic Situation in Russia during the 1990s
- 1.1 Overview
- 1.1.1 Structure of Regions and Their Economic Structure
- 1.1.2 Sectoral Structure
- 1.2 Economic Policies
- 1.2.1 Fiscal Policy
- 1.2.2 Monetary Policy
- 1.3 Banking System
- 1.4 Financial Markets
- 1.4.1 Credit Market
- 1.4.2 Foreign Exchange Market
- 1.4.3 Securities Market
- 1.5 Inflation
- 1.6 Initial Conditions for Enterprises
- 2. Legal and Tax Issues in Russia
- 2.1 Legal Overview
- 2.2 Property Rights
- 2.2 Legal Issues in Corporate Governance
- 2.3 Law Enforcement in Russia
- 2.3.1 Court System
- 2.3.2 Corporate Governance
- 2.3 Semi-legal Structures and Corruption
- 2.4 Conclusions on Legal Issues
- 2.5 Taxation
- 2.5.1 Taxation System of the 1990s
- 2.5.2 Regional Structure
- 3 Definitions of Non-Monetary Transactions
- 3.1 Primary Markets
- 3.2 Secondary Markets
- 4. Theoretical Explanations and Causes of NMTs and NMT Markets
- 4.1 Liquidity and Credit Squeeze
- 4.1.1 Macroeconomic View
- 4.1.2 Microeconomic View
- 4.2 Implicit Subsidies
- 4.3 Rent Seeking
- 4.3.1 Governmental Officials
- 4.3.2 Managers
- 4.4 Network Effects
- 4.5 Tax Evasion
- 4.6 Regional and Sectoral Differences
- 5. Empirical Support for Explanations and Causes
- 5.1 Empirical Studies and Difficulties
- 5.2 Evidence from the Empirical Studies
- 5.3 Liquidity and Credit Squeeze
- 5.3.1 Microeconomic View
- 5.3.1 Macroeconomic View
- 5.4 Implicit Subsidies
- 5.4.1 Governmental Entities
- 5.4.2 Inter-Enterprise Sector
- 5.5 Rent Seeking and Network Effects
- 5.6 Tax evasion
- 5.7 Regional and Sectoral Structure
- 6. Non-Monetary Transaction Markets of the 1990s
- 6.1 NMT Markets as a Russian Phenomenon
- 6.2 Liquidity
- 6.3 Instruments of Primary and Secondary Markets
- 6.3.1 Barter
- 6.3.2 Offsets
- 6.3.3 Veksels
- 6.4 Segmentation of NMT Markets
- 6.4.1 Characteristics of Enterprises
- 6.4.2 Effects of NMTs Usage
- 6.5 Conclusion
- 7. Effects Associated with NMT
- 7.1 Reallocation of Credit
- 7.2 Lack of Restructuring
- 7.4 Reduction of Transparency
- 7.5 Limit of Disorganization in Transition
- 8. International Comparison and Current Situation
- 8.1 NMTs in Other Transition Economies
- 8.2 NMTs in Western Europe and the USA
- 8.3 Current Situation in Russia
- The economic situation in Russia during the 1990s, including regionalism, sectoral structure, economic policies, banking system, financial markets, inflation, and initial conditions for enterprises.
- The legal and tax framework in Russia during the 1990s, encompassing legal overview, property rights, corporate governance, law enforcement, and taxation systems.
- The various theoretical explanations for the emergence and growth of NMTs, including liquidity and credit squeeze, implicit subsidies, rent-seeking, network effects, and tax evasion.
- The empirical evidence supporting the theoretical explanations, drawing on existing studies and data analysis.
- The characteristics and effects of NMT markets in Russia, focusing on liquidity, instruments of primary and secondary markets, market segmentation, and the economic consequences associated with the prevalence of NMTs.
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The thesis aims to explore the phenomenon of Non-Monetary Transactions (NMTs) in Russia during the 1990s, examining the economic and legal factors contributing to their emergence and growth. The study seeks to provide an in-depth analysis of the various theoretical explanations and empirical evidence for the prevalence of NMTs in the Russian context, ultimately contributing to a broader understanding of economic transitions and their impact on market dynamics.
Zusammenfassung der Kapitel (Chapter Summaries)
The thesis begins by establishing the economic context of Russia during the 1990s, analyzing the transition from a centrally planned economy to a market-oriented system. The chapter examines the regional and sectoral structure, economic policies, banking system, financial markets, inflation, and initial conditions for enterprises, providing a foundation for understanding the economic landscape within which NMTs emerged.
The second chapter delves into the legal and tax framework in Russia during the transition period, exploring the legal overview, property rights, corporate governance, law enforcement, and taxation systems. This analysis highlights the challenges and complexities faced by businesses operating in a rapidly evolving legal environment, potentially contributing to the development of NMTs as a means of mitigating legal and tax risks.
The third chapter provides a detailed definition of NMTs, distinguishing between primary and secondary markets, and laying the groundwork for the subsequent analysis of theoretical explanations and empirical evidence.
The fourth chapter explores the theoretical explanations for the prevalence of NMTs in Russia, examining the impact of liquidity and credit squeeze, implicit subsidies, rent-seeking behavior, network effects, and tax evasion. These explanations provide insights into the underlying factors driving the emergence and growth of NMTs.
The fifth chapter presents the empirical evidence supporting the theoretical explanations, drawing on existing studies and data analysis. This chapter examines the impact of liquidity and credit squeeze, implicit subsidies, rent-seeking behavior, network effects, and tax evasion on the prevalence and characteristics of NMTs in Russia.
The sixth chapter focuses on the characteristics and structure of NMT markets in Russia, exploring the role of liquidity, instruments of primary and secondary markets, market segmentation, and the impact of NMTs on various economic sectors. This chapter provides a detailed analysis of the NMT market dynamics in Russia.
The seventh chapter examines the various effects associated with the prevalence of NMTs in Russia, including reallocation of credit, lack of restructuring, reduced transparency, and limitations on the transition process. This chapter highlights the potential economic consequences of NMTs.
Schlüsselwörter (Keywords)
Non-Monetary Transactions, NMTs, Russia, Transition Economy, Barter, Offsets, Veksels, Liquidity, Credit Squeeze, Implicit Subsidies, Rent Seeking, Tax Evasion, Regional and Sectoral Differences, Legal Framework, Corporate Governance, Economic Reform, Economic Transition, Market Dynamics, Macroeconomic Analysis, Microeconomic Analysis, Empirical Studies, Market Segmentation.
- Quote paper
- Alexander Gruen (Author), 2004, Non-Monetary Transactions (NMTs) in Russia during 1990s, Munich, GRIN Verlag, https://www.grin.com/document/946904
