Compliance with IMF Program Indicators and Growth in Transition Economies

This paper makes use of the International Monetary Fund's (IMF) Database for Monitoring Fund Arrangements (MONA) to investigate whether transition countries that more successfully implement the conditionality of IMF programs in the early transition years show a better performance in recovery and growth. The results indicate that the level of compliance with structural benchmarks in IMF programs does not explain growth in program countries. However, the paper finds a definite, positive relationship between the index of compliance with quantitative performance criteria and growth, even after controlling for the extent of initial stabilization in transition countries.