Russia's Debt Crisis and the Unofficial Economy

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 978

Classification and Topics

• Classification: Wirtschaft ; International Lending and Debt Problems ; National Debt; Debt Management; Sovereign Debt
• Subject: Foreign debt ; debt restructuring ; Russian Federation ; Auslandsverschuldung ; Auslandsschuldendienst ; Steuerpolitik ; Schattenwirtschaft ; Unternehmensbesteuerung ; Kapitalflucht ; Umschuldung ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schrooten, Mechthild ; Lusinyan, Lusine ; Heinrich, Ralph P. ; Buch, Claudia M.
• Event: Veröffentlichung
• (who): Kiel Institute of World Economics (IfW)
• (where): Kiel
• (when): 2000

Further information

• Handle: http://hdl.handle.net/10419/17916
• Last update: 10.03.2025, 11:43 AM CET