Article ID Journal Published Year Pages File Type
992623 World Development 2006 20 Pages PDF
Abstract

SummaryIn theory, the IMF could influence economic growth via several channels, among them being advice to policy makers, money disbursed under its programs, and its conditionality. This paper tries to separate those effects empirically. Using panel data for 98 countries over the period 1970–2000, it analyzes whether IMF involvement influences economic growth in program countries. Consistent with the results of previous studies, it is shown that IMF programs reduce growth rates when their endogeneity is accounted for. There is also evidence that compliance with conditionality mitigates this negative effect, while the overall impact, however, remains negative. IMF loans have no robust statistically significant impact.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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