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IMF-Supported Programs in Low Income Countries :, Economic Impact over the Short and Longer Term, Christian Mumssen, Yasemin Bal Gunduz, Christian Ebeke, Linda Kaltani

This paper studies the short and longer-term impact of IMF engagement in Low-Income Countries (LICs) over nearly three decades. In contrast to earlier studies, we focus on a sample composed exclusively of LICs and disentangle the different effects of IMF longer-term engagement and short-term financing using a propensity score matching approach to control for selection bias. Our results indicate that longer-term IMF support (at least five years of program engagement per decade) helped LICs sustain economic growth and boost resilience by building fiscal buffers. Interestingly, the size of IMF financing has no significant impact on economic growth, possibly pointing to the prominent role of IMF policy advice and institutional capacity building in the context of longer-term engagement. We also present evidence that the short-term IMF engagement through augmentations of existing programs or short-term and emergency facilities is positively associated with a wide range of macroeconomic outcomes. Notably, the IMF financial support has the greatest impact on short-term growth when LICs are faced with substantial macroeconomic imbalances or exogenous shocks
Table Of Contents
Cover; Contents; Abbreviations and Acronyms; I. Overview; Figures; 1. Years Spent by LICs Under IMF-Supported Programs, 1986-2011; II. Overview of the Empirical Literature and Contribution of the Current Study; Tables; 1. Summary of Literature on the Impact of IMF Programs, 2000-12; III. Impact of Longer-Term IMF Engagement in LICs; 2. Changes in Average Decadal GDP Per Capita Growth and Poverty Gaps, 1986-2010; 2. Impact of Longer-Term IMF Engagement on Economic Performance; 3. Determinants of Long-Term Real Per Capita GDP Growth; IV. Impact of Short-Term IMF Engagement in LICs
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (65 p.)
Specific Material Designation
Form Of Item

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