Complementarity between Multilateral Lending and Private Flows to Developing Countries : Some Empirical Results

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.

Bibliographic Details

Main Author:	Ratha, Dilip
Language:	English en_US
Published:	World Bank, Washington, DC 2001-12
Subjects:	FINANCIAL FLOWS, MULTILATERAL AID, PRIVATE FINANCE, INVESTMENT ENVIRONMENT, CAPITAL FLOWS, PRIVATE CAPITAL FLOWS, EXTERNAL FINANCE, CREDIT RATIONING ADB, BANK LENDING, BANK LOANS, BONDS, BORROWING COUNTRIES, CONCESSIONAL LENDING, CREDIT RATIONING, CYCLICAL BEHAVIOR, DATA ANALYSIS, DATA SET, DEBT, DEBT RELIEF, DEPENDENT VARIABLE, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT ASSISTANCE, DEVELOPMENT ECONOMICS, DEVELOPMENT ISSUES, DEVELOPMENT POLICY, ECONOMIC ENVIRONMENT, ECONOMIC MANAGEMENT, ECONOMIC POLICY, EMERGING MARKET ECONOMIES, EMERGING MARKETS, EXPORTS, FEDERAL RESERVE BANK OF NEW YORK, FINANCIAL CRISES, FINANCIAL INSTITUTIONS, FOREIGN DIRECT INVESTMENT, FOREIGN ENTRY, FUTURE RESEARCH, GDP, GLOBAL DEVELOPMENT, GNP, GNP PER CAPITA, GROWTH POTENTIAL, GROWTH RATE, HOUSING, INCOME, INCOME COUNTRIES, INCOME DEVELOPING COUNTRIES, INCOME GROUPS, INCOME LEVEL, INDUSTRIAL COUNTRIES, INSTITUTIONAL ENVIRONMENT, INTEREST RATE, INTERNATIONAL RESERVES, LABOR MARKETS, LENDING INSTITUTIONS, LOW- INCOME COUNTRIES, LOW-INCOME COUNTRIES, MACROECONOMICS, MARKET ECONOMIES, MDB, MIDDLE-INCOME COUNTRIES, MORAL HAZARD, MULTILATERAL DEVELOPMENT BANKS, MULTIVARIATE REGRESSIONS, OFFICIAL AID, PER CAPITA INCOME, POLICY ENVIRONMENT, POLICY REFORM, POLICY RESEARCH, POOR COUNTRIES, POPULATION SIZE, PORTFOLIO, POSITIVE EFFECTS, POVERTY REDUCTION, PRIVATE CAPITAL, PRIVATE FLOWS, PRIVATE INVESTMENT, PRIVATE INVESTORS, PRIVATE SECTORS, PUBLIC INVESTMENT, PUBLIC POLICY, PUBLIC SERVICES, RATING AGENCIES, REGIONAL DEVELOPMENT BANKS, SCALE EFFECT, SHORT TERM, SHORT-TERM DEBT, SOCIAL POLICY, STRUCTURAL FACTORS, STRUCTURAL REFORMS, URUGUAY ROUND, WEALTH, WTO, ADB,
Online Access:	http://documents.worldbank.org/curated/en/2001/12/1660281/complementarity-between-multilateral-lending-private-flows-developing-countries-some-empirical-results https://hdl.handle.net/10986/19337
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