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Do IMF-Supported Programs Help Make Fiscal Adjustment More Durable?

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Author Info
Soojin Moon
Aleš Bulir

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Abstract

This paper investigates fiscal developments in 112 countries during the 1990s. It finds that, while the overall fiscal balance improved in most of them, the composition of this improvement differed. In nonprogram countries, revenues increased modestly and expenditure declined sharply, while in program countries both revenue and expenditure declined. However, in countries with programs that included structural conditions the adjustment was effected primarily through sharp expenditure compression. We did not find evidence of a statistically significant impact of IMF conditionality. Morever, fiscal improvements are strongly influenced by cyclical factors

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 03/38.

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Length: 44 pages
Date of creation: 19 Mar 2003
Date of revision:
Handle: RePEc:imf:imfwpa:03/38

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Related research
Keywords: Fund-supported adjustment programs ; Conditionality ; Fiscal policy ;

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  1. David Felix, 2003. "The Past as Future? The Contribution of Financial Globalization to the Current Crisis of Neo-Liberalism as a Development Strategy," Working Papers wp69, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
  2. Ricardo Martin & Alex Segura-Ubiergo, 2005. "Social Spending in IMF-supported Programs," Public Economics 0504011, EconWPA. [Downloadable!]
  3. David Felix, 2003. "The Past as Future? The Contribution of Financial Globalization to the Current Crisis of Neo-Liberalism as a Development Strategy," Development and Comp Systems 0310002, EconWPA. [Downloadable!]
  4. Alex Mandilaras & Graham Bird, 2008. "Foreign exchange pressures in Latin America: does debt matter?," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(5), pages 613-627. [Downloadable!]
    Other versions:
  5. Emanuele Baldacci & Benedict J. Clements & Sanjeev Gupta & Erwin Tiongson, 2003. "What Sustains Fiscal Consolidations in Emerging Market Countries?," IMF Working Papers 03/224, International Monetary Fund. [Downloadable!]
  6. Roberto Benelli, 2003. "Do IMF-Supported Programs Boost Private Capital Inflows? The Role of Program Size and Policy Adjustment," IMF Working Papers 03/231, International Monetary Fund. [Downloadable!]
  7. Sanjeev Gupta & Emanuele Baldacci & Benedict Clements & Erwin R. Tiongson, 2005. "What sustains fiscal consolidations in emerging market countries?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 10(4), pages 307-321. [Downloadable!]
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