A Comparison of Business Bankruptcies Across Industries in Canada, 1981-2000

18 Pages Posted: 25 Jan 2001

Date Written: December 2000

Abstract

We analyze the effect of bankruptcy law, free trade, the GST, and various macroeconomic variables on the number of business bankruptcy filings in each of the 7 major sectors of the Canadian economy from January 1981 to March 2000. Industry regressions indicate that the introduction of the Bankruptcy and Insolvency Act in 1992 increased the number of bankruptcies in the Wholesale and Retail Trade industries and Service industries and decreased the number of bankruptcies in Primary industries and Transportation. We also find that the money supply and the exchange rate have significant impacts on the number of bankruptcies.

Keywords: Bankruptcy law, free trade, insolvency

JEL Classification: G33, G38

Suggested Citation

Fisher, Timothy and Martel, Jocelyn, A Comparison of Business Bankruptcies Across Industries in Canada, 1981-2000 (December 2000). Available at SSRN: https://ssrn.com/abstract=256132 or http://dx.doi.org/10.2139/ssrn.256132

Timothy Fisher

Wilfrid Laurier University ( email )

Economics
Waterloo, Ontario N2L 3C5
Canada
519-884-0710 (2671) (Phone)
519-888-1015 (Fax)

Jocelyn Martel (Contact Author)

ESSEC Business School ( email )

Avenue Bernard Hirsch B.P. 50105
Cergy-Pontoise, 95021
France
33 1 34 43 33 21 (Phone)

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