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Which Variables Explain Decisions On Imf Credit? An Extreme Bounds Analysis

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  • Jan‐Egbert Sturm
  • Helge Berger
  • Jakob De Haan

Abstract

This paper analyses which economic and political factors affect the chance that a country receives IMF credit or signs an agreement with the Fund. We use a panel model for 118 countries over the period 1971–2000. Our results, based on extreme bounds analysis, suggest that it is mostly economic variables that are robustly related to IMF lending activity, while most political variables that have been put forward in previous studies on IMF involvement are non‐significant. To the extent that political factors matter, they seem more closely related to the conclusion of IMF agreements than to the disbursement of IMF credits.

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  • Jan‐Egbert Sturm & Helge Berger & Jakob De Haan, 2005. "Which Variables Explain Decisions On Imf Credit? An Extreme Bounds Analysis," Economics and Politics, Wiley Blackwell, vol. 17(2), pages 177-213, July.
    • Handle: RePEc:bla:ecopol:v:17:y:2005:i:2:p:177-213
    DOI: 10.1111/j.1468-0343.2005.00151.x
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    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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