SPECIFICS OF OPERATIONAL FUNDING OF ENTERPRISES UNDER CENTRALLY PLANNED ECONOMY – THEORY AND PRAXIS IN CZECHOSLOVAKIA BEFORE 1989
ALEŠ ROD, KLÁRA ČERMÁKOVÁ
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.
Keywords:
central planning, socialism, banking, corporate finance, operational funding, credits for constantly revolving stocks, inefficiencies
DOI: 10.52950/ES.2015.4.3.003
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APA citation:
ALEŠ ROD, KLÁRA ČERMÁKOVÁ (2015). Specifics of Operational funding of enterprises under centrally planned economy – theory and praxis in Czechoslovakia before 1989 . International Journal of Economic Sciences, Vol. IV(3), pp. 39-51. , DOI: 10.52950/ES.2015.4.3.003
Data:
Received: 4 Jul 2015
Revised: 20 Aug 2015
Accepted: 6 Sep 2015
Published: 20 Sep 2015
Copyright © 2015, Aleš Rod et al, ales.rod@vse.cz