IMF Lending in an Interconnected World / Jean-Guillaume Poulain, Julien Reynaud.

Format:

Book

Government document

Author/Creator:

Poulain, Jean-Guillaume.

Contributor:

Reynaud, Julien.

Series:

IMF Working Papers; Working Paper ; No. 2017/155

IMF Working Papers

Language:

English

Physical Description:

1 online resource (31 pages)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2017.

Summary:

We analyze the determinants of IMF lending since the early nineties, a period during which the roles of financial cycles and interconnectedness as amplifiers and transmitters of economic crises have gained prominence. First, we show that the global financial cycle is an important driver of IMF lending cycles. Second, using a panel of 91 advanced, emerging, and frontier economies over 1992-2014, we show that global factors and interconnectedness, as proxied by a countries’ potential exposure to economic spillovers from trade partners, together with more traditional idiosyncratic factors, have a significant impact on the probability that a member country obtains financial assistance from the IMF. Our results are robust to various robustness checks. The approach presented in this paper can be used to assess future demand for IMF financial assistance.

Contents:

Cover

Contents

Abstract

I. Introduction

II. Factors Influencing IMF lending

A. Global factors

B. Interconnectedness

C. Idiosyncratic factors

III. The Analytical Framework

A. General Approach

B. Definition of Variables

IV. Estimations Results

A. Results

B. Goodness of fit

C. Robustness Checks

V. Conclusion

References

Annex I - Long term relationship between GRA credit outstanding and the VIX

Annex II - Data

A. Sources

B. Interconnectedness indicators' panel summary statistics

C. Countries in the sample.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

9781484308967

1484308964

9781484308998

1484308999

OCLC:

994448516