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dc.titleBridging the Gap: Mobilization of Multilateral Development Banks in Infrastructure
dc.contributor.authorAvellán, Leopoldo
dc.contributor.authorGalindo, Arturo
dc.contributor.authorLotti, Giulia
dc.contributor.authorRodríguez Bonilla, Juan Pablo
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2022-02-08T00:02:00
dc.date.issue2022-02-08T00:02:00
dc.description.abstractWe 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 developing and emerging markets from the Infrastructure Journal database. Using granular data, we analyze the dynamics of flows from different actors to infrastructure at the country-subsector level, 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 both the public and the private sectors. Effects exhibit country heterogeneity. Mobilization occurs in countries of all income levels, though it is stronger in low and lower-middle income countries. In countries that use capital controls frequently mobilization effects are undermined. When the global financial crisis of 2008 hit, no difference in mobilization effects was found, unlike the COVID-19 pandemic when mobilization effects were weakened. The findings survive a long battery of robustness checks, and no evidence of anticipation effects is found.
dc.format.extent57
dc.identifier.doihttp://dx.doi.org/10.18235/0004006
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Bridging-the-Gap-Mobilization-of-Multilateral-Development-Banks-in-Infrastructure.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectFinance
dc.subjectDevelopment Bank
dc.subjectCapital Flow
dc.subjectGross Domestic Product
dc.subjectInfrastructure Work
dc.subjectInfrastructure Development
dc.subjectEmerging Market
dc.subjectNon-Sovereign Guaranteed Operation
dc.subjectInvestment
dc.subjectPrivate Sector
dc.subjectIncome Distribution
dc.subject.jelcodeF21 - International Investment • Long-Term Capital Movements
dc.subject.jelcodeF34 - International Lending and Debt Problems
dc.subject.jelcodeG15 - International Financial Markets
dc.subject.jelcodeH81 - Governmental Loans • Loan Guarantees • Credits • Grants • Bailouts
dc.subject.jelcodeO19 - International Linkages to Development • Role of International Organizations
dc.subject.keywordsCatalytic finance;Infrastructure
idb.identifier.pubnumberIDB-WP-01299
idb.operationRG-E1774
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