IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/190.html
   My bibliography  Save this paper

Macro performance under adjustment lending

Author

Listed:
  • Faini, Riccardo
  • De Melo, Jaime
  • Senhadji-Semlali, Abdel
  • Stanton, Julie

Abstract

The authors of this paper use simple statistical methods to measure the effect of adjustment lending (AL) on economic performance. Using eight economic indicators, they rely on traditional"before-after"comparisons of AL recipients and a control group of 62 countries. How have countries under adjustment lending performed? AL countries improved their external position, generating enough of a trade balance surplus to service their external debt. Fiscal indicatorsdeteriorated, however, a sign that macroeconomic imbalances remained. Finally, growth rates fell, reflecting deteriorating terms of trade and the difficulties of reducing absorption to the required degree. On nine economic indicators, AL recipients fared better overall than the non recipients - though the improvement varied between 53 and 33 percent, depending on the classification. Some improvements were mild, some statistically insignificant. Improvements are stronger for a group of 12 AL recipients that received 3 or more adjustment loans.

Suggested Citation

  • Faini, Riccardo & De Melo, Jaime & Senhadji-Semlali, Abdel & Stanton, Julie, 1989. "Macro performance under adjustment lending," Policy Research Working Paper Series 190, The World Bank.
    • Handle: RePEc:wbk:wbrwps:190
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/08/18/000009265_3960927174218/Rendered/PDF/multi_page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cline, William R, 1985. "International Debt: From Crisis to Recovery?," American Economic Review, American Economic Association, vol. 75(2), pages 185-190, May.
    2. Rudiger Dornbusch, 1985. "Policy and Performance Links between LDC Debtors and Industrial Nations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 16(2), pages 303-368.
    3. Jeffrey Sachs & Harry Huizinga, 1987. "U.S. Commercial Banks and the Developing-Country Debt Crisis," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(2), pages 555-606.
    4. François Bourguignon & William H. Branson & Jaime de Melo, 1989. "Macroeconomic Adjustment and Income Distribution: A Macro-Micro Simulation Model," OECD Development Centre Working Papers 1, OECD Publishing.
    5. Balassa, Bela, 1988. "Quantitative appraisal of adjustment lending," Policy Research Working Paper Series 79, The World Bank.
    6. Kormendi, Roger C. & Meguire, Philip G., 1985. "Macroeconomic determinants of growth: Cross-country evidence," Journal of Monetary Economics, Elsevier, vol. 16(2), pages 141-163, September.
    7. Dani Rodrik, 1988. "The Welfare Economics of Debt Service," NBER Working Papers 2655, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dreher, Axel & Vaubel, Roland, 2000. "Does the IMF cause moral hazard and political business cycles? : Evidence from panel data," Discussion Papers 598, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    2. Graham Bird & Dane Rowlands, 2000. "The catalyzing role of policy-based lending by the IMF and the World Bank: fact or fiction?," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(7), pages 951-973.
    3. Wasseem Mina & Jorge Martinez-Vazquez, 2002. "IMF Lending, Maturity of International Debt and Moral Hazard," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0301, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    4. Ratha, Dilip, 2001. "Complementarity between multilateral lending and private flows to developing countries : some empirical results," Policy Research Working Paper Series 2746, The World Bank.
    5. Mozammel Huq & Michael Tribe, 2004. "Economic development in a changing globalized economy," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(7), pages 911-923.
    6. Jeffrey A. Frankel & Nouriel Roubini, 2001. "The Role of Industrial Country Policies in Emerging Market Crises," NBER Working Papers 8634, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Riccardo Faini & Jaime De Melo & Abdelhak Senhadji & Julie Stanton, 2015. "Growth-Oriented Adjustment Programs: A Statistical Analysis," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 5, pages 125-135, World Scientific Publishing Co. Pte. Ltd..
    2. Hentschel, Jesko, 1988. "Managing international debt: State of the art," Discussion Papers, Series II 54, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    3. Amal Nagah Elbeshbishi, . "Evaluating the World Bank's Role in Supporting Structural Adjustment in Developing Countries With Special Reference to Egypt," Fordham Economics Dissertations, Fordham University, Department of Economics, number 2000.1, June.
    4. Sergey BLINOV, 2017. "Inflation and economic growth," Journal of Economics Library, KSP Journals, vol. 4(3), pages 345-358, September.
    5. Juan José Echavarría & Andrés González, 2012. "Choques internacionales reales y financieros y su impacto sobre la economía colombiana," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 30(69), pages 14-66, December.
    6. Joao Ayres & Constantino Hevia & Juan Pablo Nicolini, 2021. "Real Exchange Rates and Primary Commodity Prices: Mussa Meets Backus-Smith," Working Papers 89, Red Nacional de Investigadores en Economía (RedNIE).
    7. Jing Xing, 2011. "Does tax structure affect economic growth? Empirical evidence from OECD countries," Working Papers 1120, Oxford University Centre for Business Taxation.
    8. Saaed, A.A.J., 2007. "Inflation and Economic Growth in Kuwait: 1985-2005. Evidence from Co-Integration and Error Correction Model," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
    9. Sobel, Andrew C., 2002. "State institutions, risk, and lending in global capital markets," International Business Review, Elsevier, vol. 11(6), pages 725-752, December.
    10. Aygun Garayeva & Gulzar Tahirova, 2017. "Government Spending Effectiveness and the Quality of Fiscal Institutions," Business & Management Compass, University of Economics Varna, issue 2, pages 128-143.
    11. Löschel, Andreas & Pothen, Frank & Schymura, Michael, 2015. "Peeling the onion: Analyzing aggregate, national and sectoral energy intensity in the European Union," Energy Economics, Elsevier, vol. 52(S1), pages 63-75.
    12. repec:elg:eechap:15325_21 is not listed on IDEAS
    13. Oznur Ozdamar & Eleftherios Giovanis & Sahizer Samuk, 2020. "State business relations and the dynamics of job flows in Egypt and Turkey," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 519-558, December.
    14. Antonio Ciccone & Marek Jarociński, 2010. "Determinants of Economic Growth: Will Data Tell?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(4), pages 222-246, October.
    15. Fabio Sabatini, 2006. "Social Capital and Labour Productivity in Italy," Working Papers 2006.30, Fondazione Eni Enrico Mattei.
    16. Siebert, Horst, 1990. "Wege aus der Verschuldungskrise," Kiel Working Papers 435, Kiel Institute for the World Economy (IfW Kiel).
    17. Turnovsky, Stephen J. & Chattopadhyay, Pradip, 2003. "Volatility and growth in developing economies: some numerical results and empirical evidence," Journal of International Economics, Elsevier, vol. 59(2), pages 267-295, March.
    18. Marin, Dalia, 1992. "Is the Export-Led.Growth Hypothesis Valid for Industrialized Countries?," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 678-688, November.
    19. Satya Paul & Colm Kearney & Kabir Chowdhury, 1997. "Inflation and economic growth: a multi-country empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1387-1401.
    20. Sayef Bakari, 2017. "The Impact of Vegetables Exports on Economic Growth in Tunisia," Economic Research Guardian, Mutascu Publishing, vol. 7(2), pages 72-87, December.
    21. Ramey, Garey & Ramey, Valerie A, 1995. "Cross-Country Evidence on the Link between Volatility and Growth," American Economic Review, American Economic Association, vol. 85(5), pages 1138-1151, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:190. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.