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WHICH VARIABLES EXPLAIN DECISIONS ON IMF CREDIT? AN EXTREME BOUNDS ANALYSIS
Author(s) -
Sturm JanEgbert,
Berger Helge,
De Haan Jakob
Publication year - 2005
Publication title -
economics and politics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 45
eISSN - 1468-0343
pISSN - 0954-1985
DOI - 10.1111/j.1468-0343.2005.00151.x
Subject(s) - disbursement , affect (linguistics) , politics , economics , panel analysis , monetary economics , panel data , variables , econometrics , financial system , political science , finance , statistics , psychology , mathematics , communication , law
This paper analyses which economic and political factors affect the chance that a country receives IMF credit or signs an agreement with the Fund. We use a panel model for 118 countries over the period 1971–2000. Our results, based on extreme bounds analysis, suggest that it is mostly economic variables that are robustly related to IMF lending activity, while most political variables that have been put forward in previous studies on IMF involvement are non‐significant. To the extent that political factors matter, they seem more closely related to the conclusion of IMF agreements than to the disbursement of IMF credits.