EconPapers    
Economics at your fingertips  
 

Bridging the gap: Mobilization of multilateral Development Banks in Infrastructure

Leopoldo Avellan (leopoldoa@iadb.org), Arturo Galindo, Giulia Lotti and Juan Pablo Rodríguez

World Development, 2024, vol. 176, issue C

Abstract: We explore how Multilateral Development Banks (MDBs) can help to fill a large infrastructure financing gap in developing countries by indirectly mobilizing resources from other entities. The analysis focuses on more than 6,500 transactions in 2005–2020 to low-income developing and emerging markets from the Infrastructure Journal database. Using granular data aggregated at the country-sector level, we analyze the dynamics of flows from different actors to different infrastructure sectors and control for a wide range of fixed effects. MDB lending significantly increases the inflows from other sources. Cross-border and domestic resources are mobilized from the official and private sectors. Results exhibit country heterogeneity. Mobilization occurs in countries of all income levels though it decreases as a country’s income increases. In countries that use capital controls frequently, mobilization effects are undermined. When the 2008 global financial crisis hit, no difference in mobilization effects was found, unlike the COVID-19 pandemic when mobilization effects were weakened. Finally, we find evidence of complementarity between bilateral and multilateral financing in mobilizing resources. The findings survive a long battery of robustness checks, and no evidence of anticipation effects is found.

Keywords: Multilateral development banks; Capital flows; Infrastructure; Mobilization effects; Catalytic finance (search for similar items in EconPapers)
JEL-codes: F21 F34 G15 H81 O19 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X23003169
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Bridging the Gap: Mobilization of Multilateral Development Banks in Infrastructure (2022) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:176:y:2024:i:c:s0305750x23003169

DOI: 10.1016/j.worlddev.2023.106498

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).

 
Page updated 2025-01-16
Handle: RePEc:eee:wdevel:v:176:y:2024:i:c:s0305750x23003169