This paper applies the arguments of institutional economics to the issue of banking system reform. Institutional reforms are of particular importance in the financial sphere because banking operations were heavily restricted under central planning and, at the same time, banks are assigned a...

Capital flight has characterized the transformation process in Russia. Inflows of foreign direct investment have been minor and have been preceeded by inflows of portfolio capital. The paper shows that uncertainty about macroeconomic stabilization exhibits a strong negative effect on the volume...