BANKRUPTCY SYSTEMS AND ECONOMIC PERFORMANCE ACROSS CONTRIES: SOME EMPIRICAL EVIDENCE

Marianna Succurro ()
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Marianna Succurro: Dipartimento di Economia e Statistica, Università della Calabria

No 200801, Working Papers from Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF

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

Keywords: Bankruptcy Law; Enforcement; Investments; Economic Performance (search for similar items in EconPapers)
JEL-codes: G33 K40 O40 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2008-12
New Economics Papers: this item is included in nep-reg
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Citations: View citations in EconPapers (1)

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http://www.ecostat.unical.it/RePEc/WorkingPapers/WP01_2008.pdf First version, 2008-12 (application/pdf)

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