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The Response of Other Lenders to the IMF
Author(s) -
Rowlands Dane
Publication year - 2001
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/1467-9396.00298
Subject(s) - stylized fact , economics , monetary economics , international economics , developing country , macroeconomics , economic growth
Until the late 1980s, it was a stylized fact that when a country adopted an IMF program, additional loans from non‐IMF sources would be triggered. Subsequent empirical research cast doubt on this catalytic effect; a country’s past involvement with the IMF appeared to be negatively correlated with new lending. This paper examines directly the response of lenders to the presence of IMF conditional agreements in developing countries in the 1973–89 period. While total lending does appear to increase in response to the presence of some IMF agreements, the effect varies over time, and across recipients and lenders.