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Institutional Quality, Macroeconomic Stabilization and Economic Growth: A Case Study of IMF Programme Countries

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The Economic Impact of International Monetary Fund Programmes

Part of the book series: Contributions to Economics ((CE))

Abstract

In this chapter the impact of the significant institutional determinants (obtained from Chap. 2) is then estimated on real economic growth, both directly, and also indirectly, through the channel of macroeconomic stability. Results mainly validate that institutional determinants overall play a positive role in reducing macroeconomic instability, and through it, and also independently, enhance real economic growth.

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Notes

  1. 1.

    http://www.imf.org/external/pubs/ft/aa/pdf/aa.pdf

  2. 2.

    ESAF later in 1999 was renamed as, ‘Poverty Reduction and Growth Facility’ (PRGF; http://www.imf.org/external/np/exr/chron/chron.asp).

  3. 3.

    The author has used the terminology of non-prolonged users to represent a group of programme countries that have remained under an IMF programme for less than 7 years in a decade.

  4. 4.

    See Table 3.11 for group-wise list of IMF member countries during 1980–2009.

  5. 5.

    http://www.imf.org/external/pubs/ft/weo/2011/01/weodata/download.aspx

  6. 6.

    For details, see Ismihan (2003, pp. 214–215), who constructed MII.

  7. 7.

    It may be indicated here that while Ismihan (2003) only included the first four indicators to construct the MII, the current study augments it with one more indicator.

  8. 8.

    http://www.imf.org/external/np/exr/facts/sdr.htm

  9. 9.

    Data taken from IFS CD ROM (IMF).

  10. 10.

    http://data.worldbank.org/data-catalog/world-development-indicator

  11. 11.

    http://www.weforum.org/pdf/Global_Competitiveness_Reports/Reports/GCR_05_06/Composition_of_the_Growth_Competitiveness_Index

  12. 12.

    http://www.freedomhouse.org/report-types/freedom-world

  13. 13.

    http://data.worldbank.org/data-catalog/worldwide-governance-indicators

  14. 14.

    http://info.worldbank.org/governance/wgi/index.aspx#home

  15. 15.

    http://globalization.kof.ethz.ch/

  16. 16.

    http://www.heritage.org/index/explore

  17. 17.

    Like in the previous chapter, the ‘xtabond2’ command has been employed to estimate the above system.

  18. 18.

    Roodman (2007) provides details.

  19. 19.

    For details see Chap. 2.

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Authors and Affiliations

  1. Lahore, Pakistan

    Omer Javed

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  1. Omer Javed
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Appendix

Appendix

Table 3.8 Dependent variable -real GDP-non-programme countries
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Table 3.9 Dependent variable -MII- non-programme countries
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Table 3.10 Dependent variable -real GDP-non-programme countries
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Table 3.11 Group-wise list of IMF member countries
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Javed, O. (2016). Institutional Quality, Macroeconomic Stabilization and Economic Growth: A Case Study of IMF Programme Countries. In: The Economic Impact of International Monetary Fund Programmes. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-29178-9_3

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