The Impact of the IMF Loans on the Economic Growth and Human Development in the Most Indebted Countries in the period from 1997 until 2020

Abstract

A study was conducted on the impact of IMF loans on the economic growth and human development of the 13 most indebted countries from the IMF, using panel data from 1997 to 2020. The study found that IMF loans had a positive impact on the real GDP of the borrowed countries, but this effect became negative when corruption was introduced as a control variable. The loans had a negative impact on the mortality rate, but a positive impact on human development and secondary school enrollment. The study recommended that IMF loans should be directed towards proactive projects rather than consumption projects, and that governments should implement strict policies against corruption, diversify exports and revenue streams, fix and ease monetary policies, and improve the ease of doing business