The effects of IMF programs on poverty, income inequality and social expenditure in low income countries: an empirical analysis

Bird, Graham; Qayum, Faryal; Rowlands, Dane

doi:10.1080/17487870.2019.1689360

Cited by 8 publications

(11 citation statements)

References 38 publications

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“…On the other hand, increases in the income share of the lowest 10% also increase per capita MSW production. In the literature, changes in the income share of the lowest 10% are associated with poverty (Bird et al, 2021; Kwon & Kim, 2014; Odusola, 2017). In other words, it may be necessary to endure the increase in waste generation per capita to fight poverty.…”

Section: Results Discussion and Policy Implicationsmentioning

confidence: 99%

The path to sustainable municipal solid waste management: Do human development, energy efficiency, and income inequality matter?

Koçak

Bağlıtaş

2022

Sustainable Development

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This paper explores the economic, social, and technical dynamics affecting municipal solid waste (MSW) per capita in organisation for economic co-operation and development (OECD) countries from 2003 to 2018. Static and dynamic panel data methods are followed for empirical analysis. According to the estimation results, there is an inverted-U-shaped relationship between economic growth and MSW. The turning point income level, where technological and structural effects occur, is calculated in the range of $20,000-$34,000. Human development and energy efficiency have mitigating effects on MSW. Energy efficiency and human development are critical for sustainable MSW management. Credit expansion has an increasing effect on MSW generation. Financial development draws attention as a negative indicator in sustainable waste management targets. All models confirm that income inequality has an increasing effect on MSW generation. In addition, poverty reduction is associated with an increase in MSW generation. Thus, income inequality and poverty reduction are a major constraint for sustainable MSW management. After all, the empirical findings of this paper can guide authorities in designing waste management policies.

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Section: Results Discussion and Policy Implicationsmentioning

confidence: 99%

The path to sustainable municipal solid waste management: Do human development, energy efficiency, and income inequality matter?

Koçak

Bağlıtaş

2022

Sustainable Development

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“…Nevertheless, the literature regarding the link between IMF programs and social spending is ambiguous (Clements et al, 2013;Martin and Segura-Ubiergo, 2005;Nooruddin and Simmons, 2006). Structural adjustment policies that require governments to abolish food subsidies can hurt the urban poor, but may have less of an impact on people in rural areas (Bird et al, 2021). IMF-mandated reforms often lead to a devaluation of the currency of the recipient countries.…”

Section: Theoretical Considerationsmentioning

confidence: 99%

“…Structural adjustment policies that require governments to abolish food subsidies can hurt the urban poor, but may have less of an impact on people in rural areas (Bird et al , 2021). IMF-mandated reforms often lead to a devaluation of the currency of the recipient countries.…”

Section: Theoretical Considerationsmentioning

confidence: 99%

“…Investigating the effects of IMF programs on income distribution, most studies find that program participation is associated with higher inequality (Forster et al , 2019; Garuda, 2000; Lang, 2021; Oberdabernig, 2013; Stubbs et al , 2021). Recent studies have investigated the impact of IMF programs on poverty (Easterly, 2003; Garuda, 2000; Makedonas et al , 2015; Bird et al , 2021). This literature provides conflicting evidence depending on the sample and methodology used.…”

Section: Theoretical Considerationsmentioning

confidence: 99%

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The effects of IMF programs on income inequality: a semi-parametric treatment effects approach

Chletsos

Σίντος

2022

IJDI

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Purpose This paper aims to provide new insights regarding the impact of International Monetary Fund (IMF) programs on income inequality. Design/methodology/approach The paper uses a novel methodological approach proposed by Acemoglu et al. (2019), using (1) the regression adjustment, (2) the inverse probability weighting and (3) the doubly robust estimator, which combines (1) and (2), and a sample of annual data for 135 developing countries over the time period 1970 to 2015. Findings The findings show that IMF programs are associated with greater income inequality for up to five years. By differentiating the effect of IMF programs, the authors find that only IMF non-concessional programs have a significant detrimental effect on income inequality, while IMF concessional programs do not have a consistent effect on income inequality. In addition, the authors find that only IMF programs with a higher number of conditions have a detrimental and statistically significant effect on income inequality, compared to IMF programs with a smaller number of conditions, where their effect on income inequality is found to be insignificant. Originality/value To the best of the authors’ knowledge, the analysis developed in this paper contributes to the existing literature by applying the most methodologically sound identification strategy, which does not rely on the linearity assumption, the selection of instruments or matching variables and additionally takes into account the selection bias related to IMF program participation.

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“…But another strand finds that IMF programs may succeed because of a country's economic fundamentals and the government's ability to make credible commitments to reforms and not necessarily because of the IMF's "seal of approval" (Mody and Saravia, 2003). Furthermore, studies have found that IMF programs may only lead to short-lived positive impacts on economic growth (Atoyan and Conway, 2006); and have neutral or even temporary negative impact on poverty and inequality (Hajro and Joyce, 2009;Oberdabernig;2013;Bird et al, 2021). 4 Therefore, no clear consensus has yet been reached in the literature.…”

Section: Introductionmentioning

confidence: 99%

The Impact of the IMF’s COVID-19 Support to Developing and Emerging Economies

Sobrinho¹,

Chun²,

Naidoo³

2022

IMF Working Papers

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The effects of IMF programs on poverty, income inequality and social expenditure in low income countries: an empirical analysis

Cited by 8 publications

References 38 publications

The path to sustainable municipal solid waste management: Do human development, energy efficiency, and income inequality matter?

The path to sustainable municipal solid waste management: Do human development, energy efficiency, and income inequality matter?

The effects of IMF programs on income inequality: a semi-parametric treatment effects approach

The Impact of the IMF’s COVID-19 Support to Developing and Emerging Economies

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