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DYNAMICS OF USE OF IMF DEBT EVIDENCE FROM IMF MEMBERS COUNTRIES

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28 Pages : 381-400

http://dx.doi.org/10.31703/ger.2023(VIII-II).28      10.31703/ger.2023(VIII-II).28      Published : Jun 2023

Dynamics of Use of IMF Debt: Evidence from IMF Members Countries

Abstract

    This research scrutinize dynamics of use of IMF credit on the growth performance of the ten most heavily indebted countries of the world. The study employs a panel of ten countries during the period 1990-2022. Multiple tests, including LLC, IPS, Maddala-WU, and Fisher Augmented DF, reveals mixed order of integrations. Additionally, the panel co-integration tests by Pedroni, Kao, and Westerlund indicate existence of steady state equilibrium between growth performance and use of IMF loans taken by the sampled countries. The empirical results indicate that the use of IMF credit significantly and adversely affects the economic growth of these ten highly indebted countries. Moreover, the study identifies detrimental effects stemming from government expenditure, debt servicing, and inflation on economic growth. The study proposes that governments should implement austerity measures, search for alternative debt sources and control on imports and ensure proper utilization of IMF credit to save foreign reserves.

    Heavily Indebted Countries, ARDL, Use of IMF, Panel Co-integration, Crowding out

    (1) Talal Khan
    M.Phil Scholar, Department of Economics, University of Science & Technology Bannu, KP, Pakistan.
    (2) Zafir Ullah Khan
    Chairman, Department of Economics, University of Science & Technology Bannu, KP, Pakistan.
    (3) Muhammad Zubair Khan
    Director, Institute of Management Sciences, University of Science & Technology Bannu, KP, Pakistan.
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APA

CHICAGO

    CHICAGO : Khan, Talal, Zafir Ullah Khan, and Muhammad Zubair Khan. 2023. "Dynamics of Use of IMF Debt: Evidence from IMF Members Countries." Global Economics Review, VIII (II): 381-400 doi: 10.31703/ger.2023(VIII-II).28

HARVARD

    HARVARD : KHAN, T., KHAN, Z. U. & KHAN, M. Z. 2023. Dynamics of Use of IMF Debt: Evidence from IMF Members Countries. Global Economics Review, VIII, 381-400.

MHRA

    MHRA : Khan, Talal, Zafir Ullah Khan, and Muhammad Zubair Khan. 2023. "Dynamics of Use of IMF Debt: Evidence from IMF Members Countries." Global Economics Review, VIII: 381-400

MLA

    MLA : Khan, Talal, Zafir Ullah Khan, and Muhammad Zubair Khan. "Dynamics of Use of IMF Debt: Evidence from IMF Members Countries." Global Economics Review, VIII.II (2023): 381-400 Print.

OXFORD

    OXFORD : Khan, Talal, Khan, Zafir Ullah, and Khan, Muhammad Zubair (2023), "Dynamics of Use of IMF Debt: Evidence from IMF Members Countries", Global Economics Review, VIII (II), 381-400

TURABIAN

    TURABIAN : Khan, Talal, Zafir Ullah Khan, and Muhammad Zubair Khan. "Dynamics of Use of IMF Debt: Evidence from IMF Members Countries." Global Economics Review VIII, no. II (2023): 381-400. https://doi.org/10.31703/ger.2023(VIII-II).28