Mobilization Effects of Multilateral Development Banks
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 pri...
| Main Authors: | , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/455301582642614413/Mobilization-Effects-of-Multilateral-Development-Banks http://hdl.handle.net/10986/33395 |
| Summary: | 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. |
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