The Effect of IMF Programmes on Economic Growth in Low Income Countries: An Empirical Analysis |
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Authors: | Graham Bird Dane Rowlands |
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Affiliation: | 1. Robert Day School of Economics and Finance, Claremont McKenna College, Claremont Graduate University, Claremont, CA, USA;2. Norman Paterson School of International Affairs, Carleton University, Ottawa, Canada |
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Abstract: | Using an LIC-specific participation model, we adopt a propensity score matching (PSM) methodology to compare economic growth performance in countries with and without IMF programmes over the period 1989–2008. Concessional programmes are found to have had a generally positive effect on economic growth for up to two years after agreements were signed. The effects are contingent on other factors including overall initial economic conditions, recent prior growth performance, aid dependency, debt, IMF resources, recent history of IMF engagement and time period. We examine the implications of the results as the IMF considers how best to support the Sustainable Development Goals. |
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