IMF and Economic Growth: The Effects of Programs, Loans, and Compliance with Conditionality

descriptionPublicationkeyboard_double_arrow_right Article , Other literature type , Conference object , Preprint , Research 01 Jan 2005 Germany English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

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Authors: Dreher, Axel;

doi: 10.2139/ssrn.558401 , 10.1016/j.worlddev.2005.11.002

handle: 10419/19804

IMF and Economic Growth: The Effects of Programs, Loans, and Compliance with Conditionality

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Abstract

In theory, the IMF could influence economic growth via several channels, among them advice to policy makers, money disbursed under its programs, and its conditionality. This paper tries to disentangle 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 only weak evidence that compliance with conditionality mitigates this negative effect. IMF loans have no statistically significant impact.

Country

Germany

Related Organizations

École Polytechnique Fédérale de Lausanne EPFL
Switzerland
ETH Zurich
Switzerland
Heidelberg University
Germany
EIDGENOESSISCHE TECHNISCHE HOCHSCHULE ZUERICH
Switzerland
University of Konstanz
Germany

Keywords

info:eu-repo/classification/ddc/330, ddc:330, growth, IMF programs, growth, compliance, conditionality, IMF programs,growth,compliance,conditionality, O57, IMF programs, compliance, conditionality, Bedingtheit, info:eu-repo/classification/jel/F34, info:eu-repo/classification/jel/F33, info:eu-repo/classification/gnd/Wachstum, F33, F34, info:eu-repo/classification/jel/O57, Einhaltung, IWF-Programme, jel: jel:F33, jel: jel:F34, jel: jel:O57

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