Carter, P., Van de Sijpe, N. orcid.org/0000-0003-0442-7020 and Calel, R. (2021) The elusive quest for additionality. World Development, 141. 105393. ISSN 0305-750X
Abstract
Development finance institutions (DFIs) annually invest $90 billion to support under-financed projects across the world. Although these government-backed institutions are often asked to show that their investments are “additional” to what private investors would have financed, it is rarely clear what evidence is needed to answer this request. This paper demonstrates, through a series of simulations, that the nature of DFIs’ operations creates systematic biases in how a range of estimators assess additionality. Recognizing that rigorous quantitative evidence of additionality may continue to elude us, we discuss the value of qualitative evidence, and propose a probabilistic approach to evaluating additionality.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Elsevier. This is an author produced version of a paper subsequently published in World Development. Uploaded in accordance with the publisher's self-archiving policy. Article available under the terms of the CC-BY-NC-ND licence (https://creativecommons.org/licenses/by-nc-nd/4.0/). |
Keywords: | Development Finance Institutions; Investment; Additionality; Simulation |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 14 Jan 2021 07:15 |
Last Modified: | 25 Jan 2023 01:13 |
Status: | Published |
Publisher: | Elsevier |
Refereed: | Yes |
Identification Number: | 10.1016/j.worlddev.2021.105393 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:169665 |
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Filename: Elusive Quest author accepted manuscript with appendix.pdf
Licence: CC-BY-NC-ND 4.0