35981. Reevaluating the "Catalytic" Effect of IMF Programs
- Author:
- Martin S. Edwards
- Publication Date:
- 01-2000
- Content Type:
- Working Paper
- Institution:
- Center for Global Security and Democracy
- Abstract:
- While it is generally thought that Fund programs serve as a 'good housekeeping seal of approval' the empirical evidence suggests that Fund programs do not attract added inflows of so-called 'catalytic' finance. The existing work on this subject, however, suffers from two important limitations. These works assume that all programs are successfully completed, and they fail to address the effects of self-selection into IMF programs. Given these shortcomings, it is not surprising that the findings on catalytic finance have heretofore been unimpressive.
- Topic:
- International Organization and International Trade and Finance