Structural Reforms, IMF Programs and Capacity Building: An Empirical Investigation

30 Pages Posted: 1 Nov 2012

See all articles by Rabah Arezki

Rabah Arezki

World Bank - African Development Bank

Marc Quintyn

International Monetary Fund (IMF)

Date Written: September 2012

Abstract

This paper investigates the role that International Monetary Fund (IMF) programs and capacity building play in fostering structural reforms. To do so, we exploit two novel datasets on IMF capacity building and structural reforms available for over one hundred IMF member countries over the period 1980 - 2010. The main results are threefold. First, there is a general association between IMF programs and structural reforms but this relationship is not very robust. Second, IMF training leads to an increase in structural reforms but only through IMF programs and only when a significant share of public servants is trained. Third, IMF technical assistance does not significantly lead to more structural reforms but raises the likelihood of completion of ongoing IMF programs. Our results are robust to a large number of checks, estimators and correcting for endogeneity.

JEL Classification: E60, F34, H21

Suggested Citation

Arezki, Rabah and Quintyn, Marc, Structural Reforms, IMF Programs and Capacity Building: An Empirical Investigation (September 2012). IMF Working Paper No. 12/232, Available at SSRN: https://ssrn.com/abstract=2169776

Rabah Arezki (Contact Author)

World Bank - African Development Bank ( email )

15 Avenue du Ghana
P.O.Box 323-1002
Tunis-Belvedère
Tunisia

Marc Quintyn

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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