The Catalytic Effect of IMF Lending: Evidence from Sectoral FDI Data

Our study contributes to the search for the elusive catalytic effect of International Monetary Fund (IMF) lending on inflows of foreign direct investment (FDI). Recent scholarship has found that the catalytic effect is conditional on political regime and program stringency. We contribute to this literature by developing and testing a theory which describes how the catalytic effect also varies by economic sector. This is a departure from existing studies, which have tended to focus on aggregate FDI flows after crises. Our findings corroborate previous research, which finds that in general IMF lending has a substantial and negative effect on FDI. However, we find that the negative effect is concentrated in sectors that are highly dependent on external capital and have low sunk costs in the host country. Our findings are robust to several alternative explanations common in IMF literature, namely the importance of IMF program design and the ability of governments to make credible commitments to reform. Substantively, our findings suggest that investors are more likely to use IMF lending as an escape hatch in countries where FDI is dependent on external capital and has low sunk costs.     

Adolescent conceptions of the homeland: A cross-cultural study

Irish (135) and United States (123) subjects, aged from 8 to 17 years, wrote essays on their respective homelands. A content analysis revealed that American subjects, as they grow older, identify the homeland increasingly with its political ideals, while Irish subjects identify theirs with certain psychological ideals which they associate with the rural culture and landscape. Irish essays tended to be longer and more varied, and they showed a higher level of affective development. Profiles of the homeland on 7 semantic differential scales showed the break-up of a halo effect in the Irish sample. Adolescents in both countries showed a transition from concrete to abstract topics with age. The implications of these findings for research on the adolescent self-image are discussed.     

Relief and rehabilitation work in Mozambique: Institutional capacity and NGO executional strategies

The nature of the Mozambique ‘emergency?s and its institutional context pose a significant challenge to NGO aid strategies, as these organisations seek to reconcile objectives of short-term effectiveness and accountability with goals of long-term capacity-building and sustainability. The increasing emphasis on the former within the Zambezia Province Emergency Programme may be prejudicing the government's capacity to stimulate economic and social rehabilitation once the Emergency Programme aid declines. Many NGOs working within the Province have shifted from a strategy of executing relief and rehabilitation programmes through existing institutional channels to one which relies heavily on the development of their own parallel structures. The shift has been motivated by the perceived weak executional capacity of the government institutions; however, it is unclear whether the modest gains in aid effectiveness and efficiency offset the lost opportunities for institutional change and learning necessary for programme sustainability and for the longer-term rehabilitation of the economic and social infrastructure in the province.