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Crisis, Conditions, and Capital

Author

Listed:
  • Nathan M. Jensen

    (Department of Political Science, Washington University, St. Louis)

Abstract

A selection model for 68 countries between 1970 and 1998 is used to test the impact of International Monetary Fund(IMF) programs on international capital markets and examine how agreements are perceived by multinational investors. Results reveal that even after controlling for the factors that lead countries to seek IMF support, IMF agreements lead to lower levels of foreign direct investment (FDI). Countries that sign IMF agreements, ceteris paribus, attract 25% less FDI inflows than countries not under IMF agreements.

Suggested Citation

  • Nathan M. Jensen, 2004. "Crisis, Conditions, and Capital," Journal of Conflict Resolution, Peace Science Society (International), vol. 48(2), pages 194-210, April.
    • Handle: RePEc:sae:jocore:v:48:y:2004:i:2:p:194-210
    DOI: 10.1177/0022002703262860
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    References listed on IDEAS

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