Do IMF Programs Improve Economic Governance?

Author/Editor:

Jiro Honda

Publication Date:

May 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the effects of IMF financial assistance on economic governance in developing countries, based on panel data analyses of perceived governance indicators. It uses a two-stage approach to address possible endogeneity issues. The results show that successful implementation of IMF programs is associated with improvements in the quality of economic governance. Specifically, the paper finds statistically robust results that IMF concessional programs through the Poverty Reduction and Growth Facility tend to enhance the rule of law and strengthen control of corruption. Through this exercise, however, no statistically significant effect is observed for assistances under the General Resource Account.

Series:

Working Paper No. 08/114

Subject:

English

Publication Date:

May 1, 2008

ISBN/ISSN:

9781451869743/1018-5941

Stock No:

WPIEA2008114

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

32

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