## The Impact of IMF-Supported Programs on FDI in Low-income Countries

_IMF Working Papers, July 16, 2015_

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## Bibliographic details
- Authors: Ali J Al-Sadiq
- Published: July 16, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513502342.001

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### Summary
- Main objective: empirically examine the hypothesis that IMF-supported adjustment programs with low-income member countries (LICs) will facilitate FDI inflows.
- Dataset: unbalanced panel dataset for 73 low-income countries over the period 1980–2012.
- Methods: two different econometric methods that address the selection-bias problem.
- Principal empirical result: participating in IMF-supported program is associated with a significant increase in FDI inflows.

### Findings and implications
- It is common for IMF-supported adjustment programs with LICs to project that they will facilitate FDI inflows; this paper tests that claim empirically.
- The empirical results robustly show that participation in an IMF-supported program is associated with a significant increase in FDI inflows.
- Methodological emphasis: addressing selection-bias through two distinct econometric approaches strengthens the credibility of the association found.

### Subjects and keywords
- Subject: Balance of payments, Economic sectors, Foreign direct investment, Privatization
- Keywords: FDI flow, FDI inflow, FDI Inflows, FDI location, Foreign direct investment, Global, IMF participation variable, IMF program, IMF-ECF program, IMF-supported program, IMF-Supported Programs, Low-income Countries, outcome equation, Privatization, Propensity Score Matching, Treatment Effects Model, WP

*Source: IMF Working Paper — "The Impact of IMF-Supported Programs on FDI in Low-income Countries" by Ali J Al-Sadiq, July 16, 2015 (Working Paper No. 2015/157).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-impact-of-imf-supported-programs-on-fdi-in-low-income-countries-43088_