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The IMF's Role in Mobilizing Private Capital Flows: Are There Grounds for Catalytic Conversion?

By Graham Bird and Dane Rowlands


Recent theoretical and empirical research suggests that under certain conditions IMF agreements induce additional inflows of finance from other private sources. This paper provides new empirical evidence on this catalytic effect using a treatment effects model to correct for selectivity. It concludes that catalysis remains weak or negative overall, with nuances that support recent theory.IMF, catalysis, international capital flows

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