Institutional Determinants: A Case Study of IMF Programme and Non-programme Countries

The current study attempts to explore significant determinants of institutional quality—economic and political—in the case of non-programme and programme countries. The period of analysis is 1980–2009, as the activity of IMF increased during this time. Results primarily indicate that the military in power significantly reduces institutional quality, while improvement in property rights, openness, aggregate governance and real GDP growth all remain highly important in improving institutional quality, while enhancement in monetary and investment freedom also help and hence need to be focused upon by IMF programmes.