IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/10262.html

Following Public Finances: The Mirage of MDBs Countercyclicality

Author

Listed:
  • Avellán, Leopoldo
  • Galindo, Arturo
  • Lotti, Giulia

Abstract

This paper investigates the co-movement of sovereign lending from multilateral development banks (MDBs) and private creditors with government expenditure. The paper finds that multilateral sovereign lending follows government expenditure and that this correlation does not change if governments are running a surplus or a deficit. This finding raises doubts on the feasibility of MDBs to be counter-cyclical, unless the governments themselves implement counter-cyclical fiscal policies.

Suggested Citation

  • Avellán, Leopoldo & Galindo, Arturo & Lotti, Giulia, 2020. "Following Public Finances: The Mirage of MDBs Countercyclicality," IDB Publications (Working Papers) 10262, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:10262
    DOI: http://dx.doi.org/10.18235/0002305
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/Following_Public_Finances_The_Mirage_of_MDBs_Countercyclicality.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.18235/0002305?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Avellán, Leopoldo & Galindo, Arturo J. & Lotti, Giulia & Rodríguez, Juan Pablo, 2024. "Bridging the gap: Mobilization of multilateral Development Banks in Infrastructure," World Development, Elsevier, vol. 176(C).
    2. Avellán, Leopoldo & Galindo, Arturo J. & Lotti, Giulia, 2021. "Sovereign external borrowing and multilateral lending in crises," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 206-238.
    3. Fleiss, Pablo, 2021. "Multilateral development banks in Latin America: Recent trends, the response to the pandemic, and the forthcoming role," Studies and Perspectives – ECLAC Office in Washington 46916, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idb:brikps:10262. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.