Explaining IMF Lending Decisions After the Cold War

KOF Swiss Economic Institute Working Paper Series No. 279

40 Pages Posted: 30 Apr 2011

See all articles by Christoph Moser

Christoph Moser

ETH Zurich - KOF Swiss Economic Institute

Jan-Egbert Sturm

KOF Swiss Economic Institute, ETH Zurich; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: March 31, 2011

Abstract

This paper empirically investigates the economic and political factors that affect a country’s likelihood to sign an arrangement with the IMF and the determinants of the financial size of such a program. Arguably the world and the global financial architecture underwent structural changes after the ending of Cold War and so did the role of the IMF. Hence, we update and extend the work of Sturm et al. (2005) by employing a panel model for 165 countries that focuses on the post-Cold War era, i.e., 199'22009. Our results, based on extreme bounds analysis, suggest that some economic and political variables are robustly related to these two dimensions of IMF program decisions. Furthermore, we show that it is important to distinguish between concessional and non-concessional IMF loans.

Keywords: IMF, lending facilities, extreme bounds analysis

JEL Classification: O19, F33

Suggested Citation

Moser, Christoph and Sturm, Jan-Egbert, Explaining IMF Lending Decisions After the Cold War (March 31, 2011). KOF Swiss Economic Institute Working Paper Series No. 279. Available at SSRN: https://ssrn.com/abstract=1824576 or http://dx.doi.org/10.2139/ssrn.1824576

Christoph Moser (Contact Author)

ETH Zurich - KOF Swiss Economic Institute ( email )

Zurich
Switzerland

Jan-Egbert Sturm

KOF Swiss Economic Institute, ETH Zurich ( email )

Zurich
Switzerland

HOME PAGE: http://www.kof.ethz.ch

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, 81679
Germany

HOME PAGE: http://www.cesifo.de

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