This paper evaluates the effects of IMF programs at the firm level and considers the role of firm financing constraints as a channel of transmission. We examine different dimensions of a Fund program, namely participation and scope of conditionality. We find a positive effect of IMF programs on firms’ sales growth, such that average sales growth can be up to 26 percent higher in firms exposed to IMF programs, and such effect is persistent over time. We also find evidence that the firms’ financing constraint plays a role in the transmission of effects, and alleviation of these constraints improves performance. This paper, aside from providing new evidence on the effectiveness of IMF programs, brings attention to the role (and effectiveness) of official intervention, an important but under-analyzed dimension of international finance.

Bomprezzi, P., Marchesi, S. (2023). A firm level approach on the effects of IMF programs. JOURNAL OF INTERNATIONAL MONEY AND FINANCE, 132(April 2023) [10.1016/j.jimonfin.2023.102819].

A firm level approach on the effects of IMF programs

Bomprezzi, P
Co-primo
;
Marchesi, S
Co-primo
2023

Abstract

This paper evaluates the effects of IMF programs at the firm level and considers the role of firm financing constraints as a channel of transmission. We examine different dimensions of a Fund program, namely participation and scope of conditionality. We find a positive effect of IMF programs on firms’ sales growth, such that average sales growth can be up to 26 percent higher in firms exposed to IMF programs, and such effect is persistent over time. We also find evidence that the firms’ financing constraint plays a role in the transmission of effects, and alleviation of these constraints improves performance. This paper, aside from providing new evidence on the effectiveness of IMF programs, brings attention to the role (and effectiveness) of official intervention, an important but under-analyzed dimension of international finance.
Articolo in rivista - Articolo scientifico
Firm growth; IMF; IMF conditionality; Labor income share; Official flows;
English
14-feb-2023
2023
132
April 2023
102819
none
Bomprezzi, P., Marchesi, S. (2023). A firm level approach on the effects of IMF programs. JOURNAL OF INTERNATIONAL MONEY AND FINANCE, 132(April 2023) [10.1016/j.jimonfin.2023.102819].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/403597
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