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

Nkunde Mwase

No 2011/255, IMF Working Papers from International Monetary Fund

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.

Keywords: WP; BRIC financing; financing; Aid; BRICs; Low-Income Countries; Panel VAR; Panel OLS; Concessionality; BRIC loan financing; loan commitment; OECD ODA commitment data; BRIC development financing data; development financing data; Loans; Development assistance; Concessional external borrowing; Personal income; Exports; Middle East and Central Asia; Asia and Pacific; Africa; Pacific Islands; Caribbean (search for similar items in EconPapers)
Pages: 24
Date: 2011-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25331 (application/pdf)

Related works:
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:imf:imfwpa:2011/255

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().