Independent Actor or Agent? An Empirical Analysis of the impact of US interests on IMF Conditions
AbstractIn this paper we analyze whether IMF conditionality is exclusively designed in line with observable economic indicators or, alternatively, whether it is partly driven by its major shareholder, the US. A panel data analysis of 206 letters of intent from 38 countries over the period 4/1997-2/2003 reveals that the number of conditions on an IMF loan depends on a borrowing country’s voting pattern in the UN General Assembly. Closer allies of the United States (and other G7 countries) receive IMF loans with fewer conditions especially prior to elections. These results contribute to the current public policy debates on the role and process of setting IMF conditions, and provide broader insights into the influence of the United States and other G7 countries in international institutions.
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Bibliographic InfoPaper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 05-118.
Length: 33 pages
Date of creation: Dec 2005
Date of revision:
IMF; conditionality; elections; UN General Assembly voting compliance;
Other versions of this item:
- Axel Dreher & Nathan Jensen, 2003. "Independent Actor or Agent? An Empirical Analysis of the impact of US interests on IMF Conditions," International Finance 0310004, EconWPA, revised 08 Jan 2004.
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-24 (All new papers)
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