Mobilization Effects of Multilateral Development Banks

By Chiara Broccolini, Giulia Lotti, Alessandro Maffioli, Andrea F Presbitero, Rodolfo Stucchi

February 15, 2019

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Chiara Broccolini, Giulia Lotti, Alessandro Maffioli, Andrea F Presbitero, and Rodolfo Stucchi. Mobilization Effects of Multilateral Development Banks, (USA: International Monetary Fund, 2019) accessed September 19, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

We use loan-level data on syndicated lending to a large sample of developing countries between 1993 and 2017 to estimate the mobilization effects of multilateral development banks (MDBs), controlling for a large set of fixed effects. We find evidence of positive and significant direct and indirect mobilization effects of multilateral lending on the number of deals and on the total size of bank inflows. The number of lending banks and the average maturity of syndicated loans also increase after MDB lending. These effects are present not only on impact, but they last up to three years and are not offset by a decline in bond financing. There is no evidence of anticipation effects and the results are not driven by confounding factors, such as the presence of large global banks, Chinese lending and aid flows. Finally, the economic effects are sizable, suggesting that MBDs can play a vital role to mobilize private sector financing to achieve the goals of the 2030 Development Agenda.

Subject: Bank credit, Financial institutions, Fiscal policy, Loans, Money, Multilateral development institutions, Revenue mobilization, Syndicated loans

Keywords: Bank credit, Catalytic Finance, Global, Lending bank, Loan maturity, Loans, MDB dummy variable, MDB lending, MDB participation, MDB support, Mobilization effect, Mobilization Effects, Multilateral Development Banks, Multilateral development institutions, Private Capital Flows, Revenue mobilization, Syndicated loans, WP

Publication Details

Pages:

51
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2019/028
Stock No:

WPIEA2019028
ISBN:

9781484393864
ISSN:

1018-5941

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