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Complementarity between multilateral lending and private flows to developing countries : some empirical results

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  • Ratha, Dilip

Abstract

Despite the surge in private capital flows in the 1990s, lending by the multilateral development banks continues to be a significant source of external finance for low-income and lower-middle-income countries. And for middle-income countries, which receive the lion's share of private flows, multilateral lending has played an important stabilizing role during times of credit rationing. Even though multilateral loans may have behaved countercyclically with respect to private flows in the short term, these loans also tended to complement private flows in the medium term by signaling-and often fostering-a better investment environment in the borrowing countries.

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  • Ratha, Dilip, 2001. "Complementarity between multilateral lending and private flows to developing countries : some empirical results," Policy Research Working Paper Series 2746, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2746
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    References listed on IDEAS

    as
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    1. Waterloo on the Choluteca?
      by Noel Maurer in The Power and the money on 2009-07-22 03:05:24

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    Cited by:

    1. Philipp Harms & Matthias Lutz, 2003. "Aid, Governance, and Private Foreign Investment: Some Puzzling Findings and a Possible Explanation," Working Papers 03.04, Swiss National Bank, Study Center Gerzensee.
    2. Arth Mishra, 2023. "The infrastructure catalyst: analysing the impact of development finance institutions on private infrastructure financing in developing countries," CSAE Working Paper Series 2023-13, Centre for the Study of African Economies, University of Oxford.
    3. Daniel Cohen & Pierre Jacquet & Helmut Reisen, 2007. "Loans or Grants?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(4), pages 764-782, December.
    4. Boz, Emine, 2011. "Sovereign default, private sector creditors, and the IFIs," Journal of International Economics, Elsevier, vol. 83(1), pages 70-82, January.
    5. Abalkina, Anna & Libman, Alexander & Yu, Xiofan, 2013. "Development Finance in the BRIC Countries," MPRA Paper 54375, University Library of Munich, Germany.
    6. Independent Evaluation Group, 2008. "Independent Evaluation of IFC's Development Results 2008 : IFC's Additionality in Supporting Private Sector Development," World Bank Publications - Books, The World Bank Group, number 6576.
    7. Chiara Broccolini & Giulia Lotti & Alessandro Maffioli & Andrea F Presbitero & Rodolfo Stucchi, 2021. "Mobilization Effects of Multilateral Development Banks," The World Bank Economic Review, World Bank, vol. 35(2), pages 521-543.
    8. Ratha, Dilip, 2005. "Demand for World Bank lending," Economic Systems, Elsevier, vol. 29(4), pages 408-421, December.
    9. Pierre Jacquet & Jean-Michel Severino, 2004. "Prêter, donner : comment aider ?," Revue d'Économie Financière, Programme National Persée, vol. 74(1), pages 285-317.
    10. World Bank, 2005. "Global Development Finance 2005 : Mobilizing Finance and Managing Vulnerability, Volume 1. Analysis and Statistical Appendix," World Bank Publications - Books, The World Bank Group, number 8135.
    11. Maria S. Basílio, 2014. "The Determinants of Multilateral Development Banks’ Participation in Infrastructure Projects," Journal of Infrastructure Development, India Development Foundation, vol. 6(2), pages 83-110, December.
    12. Pierre E. Biscaye & Travis W. Reynolds & C. Leigh Anderson, 2017. "Relative Effectiveness of Bilateral and Multilateral Aid on Development Outcomes," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 1425-1447, November.

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