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What Determines the Implementation of IMF Programs?

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Author Info
Ozlem Arpac (University of Surrey)
Graham Bird (University of Surrey)
Alex Mandilaras (University of Surrey)

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Abstract

For many years analysis of IMF conditionality overlooked the extent to which it was implemented. However, more recently increasing attention has been paid to implementation. Theoretical contributions have focused on the importance of special interest groups, but empirical evidence has failed to provide compelling support for the theory. Indeed, empirical studies have reported mixed results that sometimes seem to be conflicting. This paper identifies a range of economic, political and institutional factors that may, in principle, influence implementation. Using various measures of implementation, it then tests an econometric model designed to capture these influences over 1992-2004 exploiting improved sources of data. The results suggest that significant determinants of implementation are trade openness, the existence of veto players and the amount of resources committed by the Fund. The paper offers an interpretation of the results and discusses the implications for policy.

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File URL: http://www.econ.surrey.ac.uk/discussion_papers/2006/DP18-06.pdf
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Publisher Info
Paper provided by Department of Economics, University of Surrey in its series Department of Economics Discussion Papers with number 1806.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 42 pages
Date of creation: Sep 2006
Date of revision:
Publication status: Forthcoming in World Development
Handle: RePEc:sur:surrec:1806

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Related research
Keywords: IMF; Implementation;

Find related papers by JEL classification:
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions
F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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