Mobilization Effects of Multilateral Development Banks

62 Pages Posted: 27 Feb 2020

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 (IDB)

Andrea Presbitero

International Monetary Fund (IMF); Centre for Economic Policy Research (CEPR)

Rodolfo Stucchi

InterAmerican Development Bank

Multiple version iconThere are 2 versions of this paper

Date Written: February 25, 2020

Abstract

This study uses 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), that is, their ability to crowd-in capital from private creditors. Controlling for a large set of fixed effects, the paper shows evidence of positive and significant mobilization effects of multilateral lending on the size of bank inflows. The number of lenders and the average maturity of syndicated loans also increase. These effects are present not only on impact but last for 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 robust to numerous tests controlling for the role of confounding factors and unobserved heterogeneity. Finally, the results are economically sizable, indicating that MDBs can mobilize about seven dollars in bank credit over a three-year period for each dollar invested.

Suggested Citation

Broccolini, Chiara and Lotti, Giulia and Maffioli, Alessandro and Presbitero, Andrea and Stucchi, Rodolfo, Mobilization Effects of Multilateral Development Banks (February 25, 2020). World Bank Policy Research Working Paper No. 9163, Available at SSRN: https://ssrn.com/abstract=3544436

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 (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Andrea Presbitero

International Monetary Fund (IMF) ( email )

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

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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/

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
60
Abstract Views
331
Rank
486,982
PlumX Metrics