Healing or Harming? Unveiling the Dual Impact of IMF Reforms on Child Health Outcomes in Developing Nations

Chletsos, Michael; Mylonidis, Nikolaos; SINTOS, Andreas

doi:10.1111/ecot.70003

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Healing or Harming? Unveiling the Dual Impact of IMF Reforms on Child Health Outcomes in Developing Nations

Chletsos, Michael; Mylonidis, Nikolaos; SINTOS, Andreas

2025 • In Economics of Transition and Institutional Change

Peer reviewed

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https://hdl.handle.net/10993/65657

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10.1111/ecot.70003

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Keywords :

child mortality rates; IMF conditionality; IMF programs; Economics and Econometrics; Economics, Econometrics and Finance (miscellaneous)

Abstract :

[en] We provide new insights regarding the impact of IMF programme participation and imposed policy reforms on child mortality rates using a sample of developing countries from 2000 to 2013. To account for the selection bias related to both IMF participation and conditionality, we employ a recently developed compound instrumental variables methodology. Using annual data, we show that IMF programme participation and state-owned enterprise (SOE) privatisation conditions improve recipient countries' child mortality rates, whereas all other conditions exert an adverse effect on child mortality rates. These novel findings highlight the heterogeneous effect of IMF conditionalities and document that mandated policy reforms aimed at alleviating mismanagement and inefficiencies in SOEs can actually lead to lower child mortality rates. More generally, our results suggest that the IMF's focus on specific structural reforms, rather than on widening the scope of conditionality, is likely to yield better public health outcomes.

Precision for document type :

Review article

Disciplines :

Macroeconomics & monetary economics
Special economic topics (health, labor, transportation...)

Author, co-author :

Chletsos, Michael ; Department of Economics, University of Piraeus, Piraeus, Greece

Mylonidis, Nikolaos ; Department of Economics, University of Ioannina, Ioannina, Greece

SINTOS, Andreas ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Department of Economics and Management (DEM)

External co-authors :

yes

Language :

English

Title :

Healing or Harming? Unveiling the Dual Impact of IMF Reforms on Child Health Outcomes in Developing Nations

Publication date :

2025

Journal title :

Economics of Transition and Institutional Change

ISSN :

2577-6975

eISSN :

2577-6983

Publisher :

John Wiley and Sons Inc

Peer reviewed :

Peer reviewed

Additional URL :

https://onlinelibrary.wiley.com/doi/pdf/10.1111/ecot.70003

Available on ORBilu :

since 01 September 2025

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