Do IMF-Supported Programs Catalyze Donor Assistance to Low-Income Countries?
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This study explores whether IMF-supported programs in low-income countries (LICs) catalyze Official Development Assistance (ODA). Based on a comprehensive set of ODA measures and using Propensity Score Matching approach to address selection bias, we show that programs addressing policy or exogenous shocks have a significant catalytic impact on both the size and the modality of ODA. Moreover, the impact is greatest when LICs are faced with substantial macroeconomic imbalances or large shocks. Nevertheless, when countries attracting similar donor assistance before shocks are matched results for bilateral ODA turn insignificant, suggesting that the catalytic impact is attributed primarily to multilateral ODA.
Series:
Working Paper No. 14/202
Subject:
Econometric models Foreign aid Fund-supported adjustment programs Low-income developing countries Official development assistance Variables (Mathematics)
English
Publication Date:
November 12, 2014
ISBN/ISSN:
9781498381635/1018-5941
Stock No:
WPIEA2014202
Format:
Paper
Pages:
33
Please address any questions about this title to publications@imf.org