IMF Working Papers

Do IMF-Supported Programs Boost Private Capital Inflows? the Role of Program Size and Policy Adjustment

By Roberto Benelli

November 1, 2003

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Roberto Benelli. Do IMF-Supported Programs Boost Private Capital Inflows? the Role of Program Size and Policy Adjustment, (USA: International Monetary Fund, 2003) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

I analyze empirically whether program size (the size of financial assistance) and policy adjustment matter for the success of IMF-supported programs. I define a program as successful if the initial program projections for net private capital flows are met or exceeded. I find that success is negatively associated with the size of financial assistance, especially in countries with market access, and that projection biases binding constraints on the amount of IMF lending may account for this association. Moreover, policy adjustment seems to have a causal positive effect on the likelihood of program success.

Subject: Balance of payments, Capital flows, Capital inflows, Fiscal consolidation, Fiscal policy, Inflation, Prices, Private capital flows

Keywords: Capital flow, Capital flows, Capital inflows, Fiscal consolidation, Global, IMF arrangement, IMF capital, IMF confidence, IMF incentive, IMF program, IMF staff, Inflation, Inflation change, Market access, Policy adjustment under programs, Private capital flows, Program access, Program size, Program size., Success of IMF programs, WP

Publication Details

  • Pages:

    35

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2003/231

  • Stock No:

    WPIEA2312003

  • ISBN:

    9781451875553

  • ISSN:

    1018-5941

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