Mobilization Effects of Multilateral Development Banks

52 Pages Posted: 8 Apr 2019

See all articles by Chiara Broccolini

Chiara Broccolini

International Monetary Fund (IMF)

Giulia Lotti

Inter-American Development Bank (IDB)

Alessandro Maffioli

Inter-American Development Bank; University of Insubria

Andrea Presbitero

International Monetary Fund (IMF)

Rodolfo Stucchi

InterAmerican Development Bank

Date Written: February 2019

Abstract

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

Keywords: Official development assistance, International bond markets, Sovereign credit ratings, International financial markets, Poverty reduction and development, Multilateral Development Banks, Private Capital Flows, Mobilization Effects, CatalyticFinance, Syndicated loans, syndicated loan, MDB, outcome variable, mobilization, bond issuance

JEL Classification: F21, F34, G15, H81, E01, L31, F16, E52, E22

Suggested Citation

Broccolini, Chiara and Lotti, Giulia and Maffioli, Alessandro and Presbitero, Andrea and Stucchi, Rodolfo, Mobilization Effects of Multilateral Development Banks (February 2019). IMF Working Paper No. 19/28. Available at SSRN: https://ssrn.com/abstract=3367412

Chiara Broccolini (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Giulia Lotti

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Alessandro Maffioli

Inter-American Development Bank ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

University of Insubria ( email )

Via Ravasi 2
Varese, 21100
Italy

Andrea Presbitero

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Rodolfo Stucchi

InterAmerican Development Bank ( email )

1300 New York Avenue NW
Washington, DC 20577
United States
+1 (202) 5237619 (Phone)

HOME PAGE: http://https://www.sites.google.com/site/rodolfostucchi/

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