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Explaining IMF lending decisions after the Cold War

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  • Christoph Moser
  • Jan-Egbert Sturm

    ()

Abstract

This paper empirically investigates the economic and political factors that affect a country’s likelihood to sign an arrangement with the IMF and the determinants of the financial size of such a program. Arguably the world and the global financial architecture underwent structural changes after the ending of Cold War and so did the role of the IMF. Hence, we update and extend the work of Sturm et al. (2005) by employing a panel model for 165 countries that focuses on the post-Cold War era, i.e., 1990–2009. Our results, based on extreme bounds analysis, suggest that some economic and political variables are robustly related to these two dimensions of IMF program decisions. Furthermore, we show that it is important to distinguish between concessional and non-concessional IMF loans.

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Bibliographic Info

Article provided by Springer in its journal The Review of International Organizations.

Volume (Year): 6 (2011)
Issue (Month): 3 (September)
Pages: 307-340

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Handle: RePEc:spr:revint:v:6:y:2011:i:3:p:307-340

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Web page: http://www.springer.com/business/sociology/journal/11558

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Related research

Keywords: IMF; Lending facilities; Extreme bounds analysis; O19; F33;

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References

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Citations

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Cited by:
  1. Stephanie Meinhard & Niklas Potrafke, 2012. "The Globalization–Welfare State Nexus Reconsidered," Review of International Economics, Wiley Blackwell, vol. 20(2), pages 271-287, 05.
  2. Axel Dreher & James Raymond Vreeland, 2011. "Buying Votes and International Organizations," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 78, Courant Research Centre PEG.
  3. Presbitero, Andrea F. & Zazzaro, Alberto, 2012. "IMF Lending in Times of Crisis: Political Influences and Crisis Prevention," World Development, Elsevier, vol. 40(10), pages 1944-1969.
  4. James Vreeland, 2011. "Foreign aid and global governance: Buying Bretton Woods – the Swiss-bloc case," The Review of International Organizations, Springer, vol. 6(3), pages 369-391, September.
  5. Silvia Marchesi & Laura Sabani, 2013. "Does it Take Two to Tango? Improving Cooperation between the IMF and the World Bank: Theory and Empirical Evidence," Development Working Papers 357, Centro Studi Luca d\'Agliano, University of Milano.
  6. Christian Mumssen & Yasemin Bal-Gunduz & Christian Ebeke & Linda Kaltani, 2013. "IMF-Supported Programs in Low Income Countries: Economic Impact over the Short and Longer Term," IMF Working Papers 13/273, International Monetary Fund.
  7. Muhammet Bas & Randall Stone, 2014. "Adverse selection and growth under IMF programs," The Review of International Organizations, Springer, vol. 9(1), pages 1-28, March.
  8. Axel Dreher & Jan-Egbert Sturm & Raymond Vreeland, 2013. "Politics and IMF Conditionality," KOF Working papers 13-338, KOF Swiss Economic Institute, ETH Zurich.
  9. Ashoka Mody & Diego Saravia, 2013. "The Response Speed of the International Monetary Fund," Working Papers Central Bank of Chile 692, Central Bank of Chile.
  10. Smets, Lodewijk & Knack, Stephen, 2014. "World Bank lending and the quality of economic policy," Policy Research Working Paper Series 6924, The World Bank.
  11. Oberdabernig, Doris A., 2013. "Revisiting the Effects of IMF Programs on Poverty and Inequality," World Development, Elsevier, vol. 46(C), pages 113-142.
  12. Silvia Marchesi & Emanuela Sirtori, 2011. "Is two better than one? The effects of IMF and World Bank interaction on growth," The Review of International Organizations, Springer, vol. 6(3), pages 287-306, September.
  13. Jochen Hartwig & Jan-Egbert Sturm, 2012. "An outlier-robust extreme bounds analysis of the determinants of health-care expenditure growth," KOF Working papers 12-307, KOF Swiss Economic Institute, ETH Zurich.
  14. Joseph Joyce & Raul Razo-Garcia, 2011. "Reserves, quotas and the demand for international liquidity," The Review of International Organizations, Springer, vol. 6(3), pages 393-413, September.
  15. Rune Hagen, 2012. "Certified or branded?," The Review of International Organizations, Springer, vol. 7(2), pages 203-230, June.
  16. J. Broz, 2011. "The United States Congress and IMF financing, 1944–2009," The Review of International Organizations, Springer, vol. 6(3), pages 341-368, September.

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