The Effects of IMF Supported-Program on the Asian Crisis

We assess the IMF supported program on the structural reforms after the Asian crisis in 1997 in terms of the before-after, with-without and event study approaches with applying a time varying parameter model to the nine Asian stock markets. All the supported countries except for Thailand ( Indonesia, Korea and Philippine) remarkably improve market efficiency after the implementation of the program, implying positive assessment of the program in the before-after approach. Among the non-supported countries, China, Taiwan, and Malaysia do not improve efficiency after the breakout of the crisis, providing partially positive assessment in the with-without approach. The Thailand, Indonesia and Korean markets show the positive abnormal returns at the dates or at the next dates of programfs announcement, providing partially positive assessment of announcement effects in the event study approach.