IMF Stabilization Programs, Policy Conduct and Macroeconomic Outcomes: A Case Study of Pakistan
This study is designed to assess the macroeconomic performance of fund-supported programs, and the sequencing and ordering of macroeconomic policies in the context of the Pakistan economy. The generalized evaluation estimator technique has been used to assess the macroeconomic impacts of the IMF supported programs. GDP growth, inflation rate, current account balance, fiscal balance and unemployment are used as the target variables in order to gauge economic performance during the program years. The vector of policy variables (that might have been adopted in the absence of programs) and the vector of foreign exogenous variables are also taken asexplanatory variables in the model, so that the individual effect of the IMF supported programs could be assessed. The result suggests that asthe IMF prescriptions were applied, the current account balance has worsened, the unemployment rate has significantly increased, and the inflation rate has increased during the years of fund-supported programs. Onlythe budget balance has shown signs of improvement. Furthermore an inadequate sequencing of reforms has contributed to the further worsening of the economic scenario during the program period.
Volume (Year): 11 (2006)
Issue (Month): 1 (Jan-Jun)
|Contact details of provider:|| Postal: Intersection Main Boulevard Phase VI DHA and Burki Road, Lahore|
Phone: (92-42) 6560939
Web page: http://www.lahoreschoolofeconomics.edu.pk/EconomicsJournal/LJEIntro.aspx
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Helpman, Elhanan & Razin, Assaf, 1987.
"Exchange Rate Management: Intertemporal Tradeoffs,"
American Economic Review,
American Economic Association, vol. 77(1), pages 107-123, March.
- Cukierman, Alex & Liviatan, Nissan, 1992.
"The Dynamics of Optimal Gradual Stabilizations,"
World Bank Economic Review,
World Bank Group, vol. 6(3), pages 439-458, September.
- Alesina, A. & Drazen, A., 1991.
"Why Are Stabilizations Delayed?,"
6-91, Tel Aviv - the Sackler Institute of Economic Studies.
- Michael Bruno, 1992. "Stabilization and Reform in Eastern Europe; A Preliminary Evaluation," IMF Working Papers 92/30, .
- Conway, Patrick, 1994. "IMF lending programs: Participation and impact," Journal of Development Economics, Elsevier, vol. 45(2), pages 365-391, December.
- J. Saul Lizondo & Peter J. Montiel, 1989. "Contractionary Devaluation in Developing Countries: An Analytical Overview," IMF Staff Papers, Palgrave Macmillan, vol. 36(1), pages 182-227, March.
- Faiz Bilquees, 1987. "The IMF Stabilization Package and Pakistan's Stabilization Experience," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 767-774.
- Dornbusch, Rudiger, 1990.
"Credibility and Stabilization,"
CEPR Discussion Papers
454, C.E.P.R. Discussion Papers.
- Saleh M. Nsouli & Mounir Rached & Norbert Funke, 2002. "The Speed of Adjustment and the Sequencing of Economic Reforms; Issues and Guidelines for Policymakers," IMF Working Papers 02/132, .
- De Gregorio, Jose, 1993. "Inflation, taxation, and long-run growth," Journal of Monetary Economics, Elsevier, vol. 31(3), pages 271-298, June.
- Zafar Iqbal, 1994. "Macroeconomic Effects of Adjustment Lending in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 33(4), pages 1011-1031.
- Allan Drazen & Elhanan Helpman, 1987. "Stabilization with Exchange Rate Management," The Quarterly Journal of Economics, Oxford University Press, vol. 102(4), pages 835-855.
- Uribe, Martin, 1999. "Comparing the welfare costs and initial dynamics of alternative inflation stabilization policies," Journal of Development Economics, Elsevier, vol. 59(2), pages 295-318, August.
- Peter J Montiel & Samir Jahjah, 2003. "Exchange Rate Policy and Debt Crises in Emerging Economies," IMF Working Papers 03/60, .
- Buffie, Edward F., 1992. "Stabilization policy and public sector prices," Journal of Monetary Economics, Elsevier, vol. 29(2), pages 253-276, April.
- Robert A. Mundell, 1962. "The Appropriate Use of Monetary and Fiscal Policy for Internal and External Stability," IMF Staff Papers, Palgrave Macmillan, vol. 9(1), pages 70-79, March.
- Balassa, Bela, 1982. "Structural adjustment policies in developing economies," World Development, Elsevier, vol. 10(1), pages 23-38, January.
- Rashid Amjad, 2003. "Solving Pakistan's Poverty Puzzle: Whom Should We Believe? What Should We Do?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 375-393.
- Rattan J. Bhatia, 1975. "Fiscal and Monetary Policy for Internal and External Stabilization Under Fixed and Floating Rates in the Presence of Capital Movements," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 14(1), pages 23-32.
- Alex Mourmouras & Anna Ivanova & George C. Anayotos & Wolfgang Mayer, 2003. "What Determines the Implementation of IMF-Supported Programs?," IMF Working Papers 03/8, .
- Soojin Moon & Ales Bulir, 2003. "Do IMF-Supported Programs Help Make Fiscal Adjustment More Durable?," IMF Working Papers 03/38, .
- Nasir M. Khilji & Jean Claude Leon, 1989. "Output Effects of Stabilization Policies: The Case of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 28(4), pages 691-707.
- Mushtaq Ahmad, 1998. "Fiscal Adjustment: Trade-offs of Macro-economic Goals and Recent Policy Reforms in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 1123-1142.
- Mohsin S. Khan, 1990. "The Macroeconomic Effects of Fund-Supported Adjustment Programs," IMF Staff Papers, Palgrave Macmillan, vol. 37(2), pages 195-231, June.
- Mohsin S. Khan & Sunil Sharma, 2001. "IMF Conditionality and Country Ownership of Programs," IMF Working Papers 01/142, .
- Werner, Alejandro M., 1999. "Building consensus for stabilizations," Journal of Development Economics, Elsevier, vol. 59(2), pages 319-336, August.
- Kiguel, Miguel A & Liviatan, Nissan, 1992. "The Business Cycle Associated.with Exchange Rate-Based Stabilizations," World Bank Economic Review, World Bank Group, vol. 6(2), pages 279-305, May.
When requesting a correction, please mention this item's handle: RePEc:lje:journl:v:11:y:2006:i:1:p:35-62. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shahid Salahuddin)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.