Department of Economics

AN ASSESSMENT OF THE EFFECTIVENESS OF INTERNATIONAL FINANCIAL INTERVENTION

Department of Economics

University of Delaware

Working Paper #2003-05

AN ASSESSMENT OF THE EFFECTIVENESS OF INTERNATIONAL FINANCIAL INTERVENTION

James L. Butkiewicz and Halit Yanikkaya

ABSTRACT

The two global international financial institutions, the International Monetary Fund and the World Bank, frequently, and often repeatedly, extend loans to developing nations. Recently, these loans have been blamed for generating adverse economic outcomes. An empirical growth model, which controls for the other determinants of growth, is used to assess the growth impact of Fund and Bank loan programs. The primary focus is on the heavily criticized IMF lending programs. Another unique feature of this study is the use of the value of lending programs rather that the number of programs. The estimates indicate that Bank lending stimulates growth in some cases, primarily by increasing public investment. Fund lending is either neutral or detrimental to growth. The channel for this effect is a negative impact of Fund lending on private investment.

The Lerner College is home to a state-of-the-art financial trading facility, the $1.4 million student-led Blue Hen Investment Fund, a student-managed restaurant and hotel, a high-technology development center of a global bank and a start-up experience for students with new business ideas.

Lerner College faculty - like Anu Sivaraman, who is among Social Media Marketing Magazine’s “Top 100 Marketing Professors on Twitter” and MBAprograms.org’s “Top 50 Marketing Professors on Twitter” - are thought leaders who command attention from influential business audiences, economists and policy makers.

All Lerner College departments offer experience-driven learning and emphasize evidence-based analytics methods to enrich the student experience. Here, finance students visit New York City’s financial districts for a first-hand look at markets trading and to meet with UD alumni.

Charles W. Horn, AS75, and wife Patricia, recently made a $3 million commitment to enhance and expand entrepreneurial studies.

  • Alfred Lerner College of Business & Economics
    303 Alfred Lerner Hall  •  Newark, DE 19716  •  USA  •  ©