Publication: Literature Review and Framework for Institutional Investor Mobilization
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Date
2023-08-28
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2023-08-28
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This literature review and framework for mobilization of financing from institutional investors is part of a wider project conducted by the World Bank Group to examine the effectiveness of activities undertaken by the Multilateral Investment Bank (MDBs) to encourage private institutional investment. The current paper begins with a review of the theoretical and econometric literature regarding the use of the MDBs to crowd in private investment. The existing literature is limited and focuses heavily on infrastructure finance. Such focus ignores the importance of other investment sectors for development. It may also bias an understanding of the possibilities for mobilization across those sectors. Therefore, the rest of the paper uses the more general theoretical literature in finance and economics concerning incentives and intermediation to establish a framework, as well as to develop some basic hypotheses regarding the encouragement of institutional investment. The framework and hypotheses are designed to be applicable to the investigation of other sectors as well, thus establishing the types of intervention in which the MDBs can have comparative advantages. In addition, they address the approaches that can have the greatest impact, including the specific roles that the MDBs will play in enhancing mobilization of institutional investor capital to various sectors.
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“Kahn, Charles M.; Silva, Anderson Caputo; Martinez Torres, Gonzalo. 2023. Literature Review and Framework for Institutional Investor Mobilization. Equitable Growth, Finance and Institutions Insight - Finance. © World Bank. http://hdl.handle.net/10986/40273 License: CC BY-NC 3.0 IGO.”
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