## Do IMF-Supported Programs Catalyze Donor Assistance to Low-Income Countries?

_IMF Working Papers, November 12, 2014_

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## Bibliographic details
- Authors: Yasemin Bal Gündüz, Masyita Crystallin
- Published: November 12, 2014
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498381635.001

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### Objective and Methodology
- Objective: Explore whether IMF-supported programs in low-income countries (LICs) catalyze Official Development Assistance (ODA).
- Methodology: Uses a comprehensive set of ODA measures and a Propensity Score Matching approach to address selection bias.

### Key Findings
- Programs that address policy or exogenous shocks have a significant catalytic impact on both the size and the modality of ODA.
- The catalytic impact is greatest when LICs are faced with substantial macroeconomic imbalances or large shocks.
- When countries attracting similar donor assistance before shocks are matched, results for bilateral ODA turn insignificant, suggesting that the catalytic impact is attributed primarily to multilateral ODA.

### Thematic Implications
- Policy/Program Focus:
  - IMF-supported programs that explicitly target policy shocks or exogenous shocks are associated with stronger donor responses.
  - Donor assistance responses differ by modality: multilateral ODA appears to drive the observed catalytic effects more than bilateral ODA in matched comparisons.
- Targeting and Timing:
  - The magnitude of macroeconomic imbalances or shocks influences the strength of the catalytic effect, implying timing and assessment of shock severity are important for program design and donor coordination.

### Keywords and Subject Areas
- Subject: Balance of payments need, Debt Relief, Foreign aid, Foreign direct investment, Sensitivity analysis
- Keywords: balance of payments, IMF financing, IMF-supported program, ODA disbursement, WP

*IMF Working Paper: Yasemin Bal Gündüz and Masyita Crystallin, November 12, 2014.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/do-imf-supported-programs-catalyze-donor-assistance-to-low-income-countries-42450_