Test Your Knowledge on the Impact of IMF Programs on Growth

Determinants of IMF Programs and Their Effect on Growth

• IMF programs are controversial and often met with popular resistance.
• The research question is the effect of IMF programs on growth.
• The sample includes 135 countries observed from 1951-1990.
• The problem of selection arises as access to IMF financing is not always predictable.
• Przeworski and Vreeland find that the IMF signs agreements with countries facing balance of payments surpluses.
• Participation in an IMF program is a bivariate decision made separately by the country and the IMF.
• There are four dimensions to consider: government seeking agreement, IMF seeking agreement, government continuing program, and IMF continuing program.
• Factors influencing government decisions include foreign currency reserves, BoP deficits, debt levels, and investment levels.
• The number of years previously spent with an active IMF program and the number of other countries with an active program also influence government decisions.
• IMF decisions are influenced by the deficit of the applicant country, the number of countries involved, and the nature of the requesting country's government.
• Governments seek IMF agreements for loans and external support on restrictive fiscal policies.
• The determinants of participation in IMF programs are complex and multifaceted.

Do you want to test your knowledge on the determinants of IMF programs and their effect on growth? This quiz covers the controversial topic of IMF programs and their impact on economic growth. From the sample size to the factors influencing government decisions and IMF decisions, this quiz covers all the dimensions you need to know. Take this quiz to see how much you know about the complex and multifaceted determinants of IMF programs and their effect on growth.