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Determinants of Development Financing Flows From Brazil, Russia, India, and China to Low-Income Countries

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  • Miss Nkunde Mwase

Abstract

BRICs development financing flows have increased significantly and are expected to become more prominent in the post-crisis era. We investigate the potential implications on the country-allocation of loan commitments and the degree of concessionality using a panel vector autoregression model and single equation dynamic panel estimation.We find that BRICs lend more to LICs with weaker institutions. Land-locked, resource-scarce LICs receive significantly less financing than other resource-rich LICs. The degree of concessionality is negatively correlated with the amount of loans and positively correlated with better institutional indicators suggesting that the higher the risks, the higher the required returns that BRICs expect.

Suggested Citation

  • Miss Nkunde Mwase, 2011. "Determinants of Development Financing Flows From Brazil, Russia, India, and China to Low-Income Countries," IMF Working Papers 2011/255, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/255
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    Cited by:

    1. Judith Tyson & Terry McKinley, 2014. "Financialization and the Developing world:Mapping the Issues," Working papers wpaper38, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    2. Vijaya Ramachandran, Julie Walz, 2011. "Brave New World: A Literature Review of Emerging Donors and the Changing Nature of Foreign Assistanc- Working Paper 273," Working Papers 273, Center for Global Development.
    3. Mitsuaki Furukawa, 2018. "Management of the international development aid system: The Case of Tanzania," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 270-284, March.
    4. Finn Ole Semrau & Rainer Thiele, 2017. "Brazil's Development Cooperation: Following in China's and India's Footsteps?," Journal of International Development, John Wiley & Sons, Ltd., vol. 29(3), pages 287-307, April.
    5. Hernandez, Diego, 2015. "Are “New” Donors Challenging World Bank Conditionality?," Working Papers 0601, University of Heidelberg, Department of Economics.
    6. Savin, Ivan & Marson, Marta & Sutormina, Marina, 2020. "How different aid flows affect different trade flows: Evidence from Africa and its largest donors," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 119-136.
    7. Furukawa, Mitsuaki, 2014. "Management of the International Development Aid System Aid System and the Creation of Political Space for China:The Case of Tanzania," Working Papers 82, JICA Research Institute.
    8. Austin Strange & Bradley Parks & Michael J. Tierney & Andreas Fuchs & Axel Dreher & Vijaya Ramachandran, 2013. "China’s Development Finance to Africa: A Media-Based Approach to Data Collection," Working Papers 323, Center for Global Development.
    9. Hernandez, Diego, 2017. "Are “New” Donors Challenging World Bank Conditionality?," World Development, Elsevier, vol. 96(C), pages 529-549.
    10. Yongzheng Yang & Miss Nkunde Mwase, 2012. "BRICs’ Philosophies for Development Financing and their Implications for LICs," IMF Working Papers 2012/074, International Monetary Fund.

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