IMF-Supported Programs and Income Convergence in Low-Income Countries

Author/Editor:

Tejesh Pradhan ; Ali J Al-Sadiq

Publication Date:

December 13, 2018

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Continuing the empirical debate on the effects of IMF-supported programs on participating countries’ macroeconomic performance, we focus on the issue of whether these programs accelerate conditional ß-convergence among low-income countries (LICs). We use an unbalanced panel dataset for 85 LICs over the period 1986-2015 and employ two different econometric methods to address the selection bias problem. Our empirical results suggest that the rate of conditional income per capita convergence is faster among LICs with extended IMF support than that in countries without support or with intermittent support.

Series:

Working Paper No. 18/284

Subject:

English

Publication Date:

December 13, 2018

ISBN/ISSN:

9781484386149/1018-5941

Stock No:

WPIEA2018284

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

37

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