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Determinants of Institutional Quality: A Case Study of IMF Programme Countries

In: The Economic Impact of International Monetary Fund Programmes

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  • Omer Javed

Abstract

Taking a panel data of IMF member countries, this chapter primarily focuses on the IMF programme countries, during 1980–2009; a time period during which the number of IMF programmes witnessed an increasing trend. Firstly, important determinants of economic- and political institutional quality in IMF programme countries are estimated by applying the System-GMM approach, so as to find significant determinants among them. Here, a parliamentary form of government, aggregate governance level, civil liberties, openness, and property rights all enhance overall institutional quality. Specifically, greater monetary- and investment freedom are conducive for political institutional quality, while military in power impacts negatively. Moreover, economic growth is conducive for enhancing economic institutional quality.

Suggested Citation

  • Omer Javed, 2016. "Determinants of Institutional Quality: A Case Study of IMF Programme Countries," Contributions to Economics, in: The Economic Impact of International Monetary Fund Programmes, edition 1, chapter 0, pages 7-35, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-29178-9_2
    DOI: 10.1007/978-3-319-29178-9_2
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    3. Rabia Haroon & Zainab Jehan, 2022. "Measuring the impact of violence on macroeconomic instability: evidence from developing countries," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(1), pages 3-30, January.

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    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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