IMF Lending and Banking Crises
Author | : Luca Papi |
Publisher | : International Monetary Fund |
Total Pages | : 56 |
Release | : 2015-01-26 |
ISBN-10 | : 9781498331623 |
ISBN-13 | : 1498331629 |
Rating | : 4/5 (629 Downloads) |
Download or read book IMF Lending and Banking Crises written by Luca Papi and published by International Monetary Fund. This book was released on 2015-01-26 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper looks at the effects of International Monetary Fund (IMF) lending programs on banking crises in a large sample of developing countries, over the period 1970-2010. The endogeneity of the IMF intervention is addressed by adopting an instrumental variable strategy and a propensity score matching estimator. Controlling for the standard determinants of banking crises, our results indicate that countries participating in IMF-supported lending programs are significantly less likely to experience a future banking crisis than nonborrowing countries. We also provide evidence suggesting that compliance with conditionality and loan size matter.