The political economy of IMF conditionality and central bank independence

Reinsberg, Bernhard; Kern, Andreas; Rau-Göhring, Matthias

doi:10.1016/j.ejpoleco.2020.101987

Cited by 17 publications

(6 citation statements)

References 147 publications

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“…Table 7 presents the results of the 2SLS model. It provides the robustness of the empirical findings of the literature on foreign aid's effectiveness and its possible consequences for the host country's governance condition (Adedokun, 2017; Asongu & Nnanna, 2019; Asongu & Nwachukwu, 2016; Dijkstra, 2018; Reinsberg et al., 2020; Youngs & Zihnioğlu, 2021). The coefficient value of ODA with the aggregate governance index is −0.035, which suggests an adverse influence of foreign aid on the overall governance condition of a country.…”

Section: Resultsmentioning

confidence: 84%

“…According to the World Bank, “grants are financial supports flow toward host country and for which there is no legal binding of repayment.” The World Bank has also defined external debt as the “total debt owed to non‐residents and repayable in currency, goods, or services.” Last, the use of IMF credit demonstrates the dependency of a specific country on IMF basic operations, that is, loan advancement. It shows the volume of loans extended by the IMF to the host country under the “Enhanced Structural Adjustment Facility.” Several studies have considered these variables as determinants of country‐level governance (Aggarwal et al., 2011; Reinsberg et al., 2020; Shittu et al., 2020). A summary of the calculation of these variables is provided in Table 2.…”

Section: Methodsmentioning

confidence: 99%

“…It shows the volume of loans extended by the IMF to the host country under the "Enhanced Structural Adjustment Facility." Several studies have considered these variables as determinants of countrylevel governance (Aggarwal et al, 2011;Reinsberg et al, 2020;Shittu et al, 2020). A summary of the calculation of these variables is provided in Table 2.…”

Section: Variablesmentioning

confidence: 99%

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Quality of governance and corporate real investment: Assessing the impact of foreign aid

Wen

Farooq

Anagreh

et al. 2022

Bulletin of Econ Res

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Developing economies are the main recipients of foreign aid. Nonetheless, such countries must face tradeoffs regarding poor governance due to the inflow of foreign aid because aid hampers governance situations. Given that, the current study aims to examine the role of country governance in defining corporate investment decisions and to ascertain how this effect varies across those countries that receive substantial amounts of foreign aid. To test the hypotheses, we collect the financial information of non-financial sector enterprises from seven economies and apply the generalized method of moments and two-stage least square models. The statistical results reveal that governance has a positive influence on corporate investment choices. This positive effect is consistent across individual effects of foreign aid. However, foreign aid systematically deteriorates the governance quality of the host country, referring to donor agencies' unnecessary interruption of the host country's institutional proceedings. This factor reduces institutional efficiency, which further deteriorates corporate investment. Our empirical analysis suggests that all the countries analysed should focus on better governance situations to promote industrial growth.

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Section: Resultsmentioning

confidence: 84%

Section: Methodsmentioning

confidence: 99%

Section: Variablesmentioning

confidence: 99%

See 1 more Smart Citation

Quality of governance and corporate real investment: Assessing the impact of foreign aid

Wen

Farooq

Anagreh

et al. 2022

Bulletin of Econ Res

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“…(1) e intrinsic mode function (IMF) component with auxiliary noise is added after decomposition by EMD instead of the white Gaussian noise signal being directly added to the original signal. (2) EMD and EEMD [28] are used to calculate the average value of the modal components obtained from empirical mode decomposition, whereas CEEM-DAN calculates the average value when the firstorder IMF [29] components are obtained; then, the above operations are repeated for the residual parts. In this way, the CEEMDAN has effectively solved the transfer and transmission problem of white noise from high frequency to low frequency.…”

Section: Data and Data Processingmentioning

confidence: 99%

A Novel Wind Speed Interval Prediction System Based on Neural Network and Multi-objective Grasshopper Optimization

Tian

Wang

2022

International Transactions on Electrical Energy Systems

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As a clean energy source, the role of wind power in the energy mix is becoming increasingly important. Reliable and high-quality wind speed prediction results are key to wind energy utilization. The traditional point prediction method cannot effectively analyze the uncertainty of wind speed, and the interval prediction model can provide the possible variation range of wind speed under a certain confidence probability and supply more uncertain information to decision makers. However, the previous interval prediction models generally ignore the random characteristics of capturing wind speed and the importance of objective selection of prediction submodels, leading to poor prediction results. To address these problems, a combined model based on data preprocessing, multi-neural network models, multi-objective optimization, and an improved interval prediction method is proposed. The model is applied to five wind speed forecasting examples in Dalian to test the prediction accuracy, multi-step prediction ability, and universality and generalization ability of the model. The experimental results show that the model proposed in this study is satisfactory for various performance evaluation indexes, has high stability and accuracy, and all the solutions obtained by the model are Pareto optimal solutions. Thus, it provides a reliable reference for the effective utilization of wind energy.

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“…For example, central bank independence (CBI), or the distancing of the central bank’s function and mandate from the national government, reduces national policy space for alternative policy options. Research by economic scholars observes that ‘strengthening CBI helps the IMF in nudging a government into painful austerity and reform measures, ultimately leading to greater (loan) program compliance’ (Reinsberg et al 2021 ). In practice, CBI becomes another binding constraint on the capacity of countries to use available policy space to pursue developmental policies toward national autonomy and economic and social development.…”

Section: Structural Power Of Financementioning

confidence: 99%

The Structural Power of the State-Finance Nexus: Systemic Delinking for the Right to Development

Muchhala

2022

Development

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The current era of financial hegemony is characterized by a dense financial actor concentration, an exacerbated reliance of many South countries on private credit and an internalized compliance of South states to financial market interests and priorities. This structural power of finance enacts itself through disciplinary mechanisms, such as credit ratings and economic surveillance, compelling many South states to respond to creditor interests at the expense of peoples’ needs. As a human rights paradigm, the Declaration on the Right to Development has the active potential to redress the structural power of finance and the distortion of the role of the state through upholding the creation of an enabling international environment for equitable and rights-based development on two levels of change. First, structural policy reforms in critical areas of debt, fiscal policy, tax, trade, capital flows and credit rating agencies. Second, systemic transformation through delinking as articulated by dependency theorist Samir Amin, which entails a reorientation of national development strategies away from the imperatives of globalization to that of economic, social, and ecological priorities and interests of people.

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The political economy of IMF conditionality and central bank independence

Cited by 17 publications

References 147 publications

Quality of governance and corporate real investment: Assessing the impact of foreign aid

Quality of governance and corporate real investment: Assessing the impact of foreign aid

A Novel Wind Speed Interval Prediction System Based on Neural Network and Multi-objective Grasshopper Optimization

The Structural Power of the State-Finance Nexus: Systemic Delinking for the Right to Development

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