Do the Bretton Woods Institutions promote economic transparency?

Disseminating data is a core mission of international organizations. The Bretton Woods Institutions (BWIs), in particular, have become a main data source for research and policy-making. Due to their extensive lending activities, the BWIs often find themselves in a position to assist and pressure governments to increase the amount of economic data that they provide. In this study, we explore the association between loans from the BWIs and an index of economic transparency derived from the data-reporting practices of governments to the World Bank. Using a matching method for causal inference with panel data complemented by a multilevel regression analysis, we examine, separately, loan commitments and disbursements from the IMF and the World Bank. The multilevel regression analysis finds a significant association between BWI loans and the improvement of economic transparency in all developing countries; the matching method identifies a causal effect in democracies.