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 brankruptcies in the Wholesale and Retail Trade industries and Service industries and decreased the number of brankruptcies in Primary industries and Transportation. We also find that then money supply and the exchange rate have significant impacts on the number of bankruptcies.
MARTEL, J. (2000). Bankruptcy. ESSEC Business School.