A firm level approach on the effects of IMF programs
Silvia Marchesi and
No 476, Working Papers from University of Milano-Bicocca, Department of Economics
This paper evaluates the effects of IMF programs at the firm level, using a panel of about 130,000 firms, over the period 2003-2018. We consider the different dimensions of a Fund program, namely participation, loan size and number and scope of conditions, and we look at their effects on growth of firm sales, as well as on income redistribution within the firm. Our identiÂ…cation strategy exploits the differential effect of changes in IMF liquidity on program participation (Lang 2016). We find a positive impact of IMF programs on firms' Â’sales growth, and the effect is persistent through time. What is more, we find that performance is improved through the alleviation of the firm financing constraint. More severe conditionality seems to worsen firm performance in the short run, but then turns beneficial over the years. Finally, we find that participating to an IMF program reduces the labor income share in the short term, but employment increases in the long run, suggesting that the increased income is reinvested into the firm.
Keywords: IMF conditionality; IMF; Firm growth; Labor Income Share. (search for similar items in EconPapers)
JEL-codes: E24 F33 O19 (search for similar items in EconPapers)
Date: 2021-08, Revised 2021-08
New Economics Papers: this item is included in nep-bec, nep-dev, nep-fdg, nep-isf and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: A firm level approach on the effects of IMF programs (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:mib:wpaper:476
Access Statistics for this paper
More papers in Working Papers from University of Milano-Bicocca, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Matteo Pelagatti ().