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The Catalytic Effect of Lending by the International Financial Institutions

In: International Finance and the Developing Economies

Author

Listed:
  • Graham Bird

    (University of Surrey)

  • Dane Rowlands

Abstract

For many less developed countries (LDCs) and countries in transition (CITs) external financing is frequently an effective constraint on economic growth and development. Capital inflows may be used to overcome shortages of domestic saving, thereby permitting higher levels of investment, as well as shortages of foreign exchange, thereby permitting larger quantities of imports.

Suggested Citation

  • Graham Bird & Dane Rowlands, 2004. "The Catalytic Effect of Lending by the International Financial Institutions," Palgrave Macmillan Books, in: International Finance and the Developing Economies, chapter 12, pages 204-226, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59984-0_12
    DOI: 10.1057/9780230599840_12
    as

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