SPECIFICS OF OPERATIONAL FUNDING OF ENTERPRISES UNDER CENTRALLY PLANNED ECONOMY – THEORY AND PRAXIS IN CZECHOSLOVAKIA BEFORE 1989

Authors

  • Aleš Rod University of Economics, Czech Republic Author
  • Klára Čermáková Prague University of Economics and Business, dept. of Economics, Czech Republic Author

DOI:

https://doi.org/10.20472/ES.2015.4.3.003

Keywords:

Central planning, Socialism, Banking, Corporate finance, Operational funding, Credits for constantly revolving stocks, Inefficiencies

Abstract

This paper deals with the system of operational funding of enterprises in a centrally planned economy. The analysis focuses on the case of Czechoslovak Socialist Republic before 1989. A tool analyzed in the paper – credits for constantly revolving working capital – had played the main role in the planned Czechoslovak economic system. These credits for constantly revolving working capital can be described as specific frameworks for loans based on forecasts and plans of volume of production made by Czechoslovak state institutions. The system had created inefficiencies in the economy and its heritage seriously influenced processes in the period of transformation after 1989, as the paper concludes.

 

Data:
Received: 4 Jul 2015
Revised: 20 Aug 2015
Accepted: 6 Sep 2015
Published: 20 Sep 2015

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Published

2015-09-20

Issue

Vol. 4 No. 3 (2015): International Journal of Economic Sciences

Section

Articles

License

Copyright (c) 2015 Aleš Rod, Klára Čermáková (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to Cite

Rod, A., & Čermáková, K. (2015). SPECIFICS OF OPERATIONAL FUNDING OF ENTERPRISES UNDER CENTRALLY PLANNED ECONOMY – THEORY AND PRAXIS IN CZECHOSLOVAKIA BEFORE 1989. International Journal of Economic Sciences, 4(3), 39-51. https://doi.org/10.20472/ES.2015.4.3.003
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