Determinants of Development Financing Flows From Brazil, Russia, India, and China to Low-Income Countries
IMF Working Papers, November 1, 2011
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- Determinants of Development Financing Flows From Brazil, Russia, India, and China to Low-Income Countries
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Bibliographic details
- Authors: Nkunde Mwase
- Published: November 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781463923914.001
Overview
- Author: Nkunde Mwase
- Date: November 1, 2011
- Series: Working Paper No. 2011/255
- Issue: 255
- Volume: 2011
- Pages: 24
- DOI: https://doi.org/10.5089/9781463923914.001
- ISBN: 9781463923914
- ISSN: 1018-5941
Research question and methodology
- Objective: Investigate implications of BRICs development financing on country-allocation of loan commitments and degree of concessionality to Low-Income Countries (LICs).
- Methods used:
- Panel vector autoregression (Panel VAR) model.
- Single equation dynamic panel estimation.
Key findings
- BRICs development financing flows have increased significantly and are expected to become more prominent in the post-crisis era.
- 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.
- Is positively correlated with better institutional indicators.
- Interpretation: the higher the risks, the higher the required returns that BRICs expect.
Subjects and keywords
- Subjects: Concessional external borrowing, Development assistance, Exports, External debt, Financial institutions, Foreign aid, International trade, Loans, National accounts, Personal income.
- Keywords: Africa, Aid, Asia and Pacific, BRIC development financing data, BRIC financing, BRIC loan financing, BRICs, Caribbean, Concessional external borrowing, Concessionality, Development assistance, development financing data, Exports, financing, loan commitment, Loans, Low-Income Countries, Middle East and Central Asia, OECD ODA commitment data, Pacific Islands, Panel OLS, Panel VAR, Personal income, WP
Publication and access notes
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Source: IMF Working Paper — Nkunde Mwase, "Determinants of Development Financing Flows From Brazil, Russia, India, and China to Low-Income Countries", Working Paper No. 2011/255, November 1, 2011.