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Do IMF Programs Improve Economic Governance?

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  • Mr. Jiro Honda

Abstract

This paper examines the effects of IMF financial assistance on economic governance in developing countries, based on panel data analyses of perceived governance indicators. It uses a two-stage approach to address possible endogeneity issues. The results show that successful implementation of IMF programs is associated with improvements in the quality of economic governance. Specifically, the paper finds statistically robust results that IMF concessional programs through the Poverty Reduction and Growth Facility tend to enhance the rule of law and strengthen control of corruption. Through this exercise, however, no statistically significant effect is observed for assistances under the General Resource Account.

Suggested Citation

  • Mr. Jiro Honda, 2008. "Do IMF Programs Improve Economic Governance?," IMF Working Papers 2008/114, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2008/114
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    4. Mr. Ali J Al-Sadiq, 2015. "The Impact of IMF-Supported Programs on FDI in Low-income Countries," IMF Working Papers 2015/157, International Monetary Fund.

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