Mobilization Effects of Multilateral Development Banks

Chiara Broccolini, Giulia Lotti, Alessandro Maffioli, Andrea Presbitero and Rodolfo Stucchi

No 2019/028, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; mobilization effect; MDB lending; MDB participation; loan maturity; MDB dummy variable; MDB support; Multilateral Development Banks; Private Capital Flows; Mobilization Effects; Catalytic Finance; Syndicated loans; lending bank; Revenue mobilization; Loans; Multilateral development institutions; Bank credit; Global (search for similar items in EconPapers)
Pages: 51
Date: 2019-02-15
New Economics Papers: this item is included in nep-dev and nep-fdg
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Citations: View citations in EconPapers (7)

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Related works:
Journal Article: Mobilization Effects of Multilateral Development Banks (2021)
Working Paper: Mobilization Effects of Multilateral Development Banks (2020)
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