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

Bal-Gunduz, Yasemin; Crystallin, Masyita

doi:10.2139/ssrn.2536897

Cited by 2 publications

(1 citation statement)

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“…While most empirical studies have, using a variety of methodologies, examined the effects of IMF-supported programs on participating countries' macroeconomic performance, 2 the relationship between IMF-supported programs and FDI has received relatively little attention. In addition, with exception to Bal Gündüz and Crystallin (2014), most empirical studies that examined the catalytic role of IMF-supported programs have largely focused on emerging markets, particularly on the impact of such programs in helping countries regain access to international financial markets. Only a few studies, such as Bird and Rowlands (2002), Jensen (2004), andBiglasier andDeRouen (2010), have examined the influence of IMF-supported programs on FDI location, and there are hardly any studies focused exclusively on low-income countries (LICs).…”

Section: Introductionmentioning

confidence: 99%

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

Alsadiq

2015

IMF Working Papers

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It is common for IMF-supported adjustment programs with low-income member countries (LICs) to project that they will facilitate FDI inflows. The main objective of this paper is to empirically examine this hypothesis. Using an unbalanced panel dataset for 73 low-income countries over the period 1980-2012, and two different econometric methods that address the selection-bias problem, the empirical results robustly show that participating in IMF-supported program is associated with a significant increase in FDI inflows.

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Section: Introductionmentioning

confidence: 99%