Foreign Financing of Developing Countries’ Private Sectors: Analysis and Description of Structure and Trends

Most forms of foreign finance for private sector development (PSD) have gone through peaks and dips over the years. The objective of the chapter is to present not only a comprehensive picture of this pattern but also to describe its movement over the years and to provide likely explanations.While our explanations are at times based on findings reported in existing empirical literature, we also have recourse to some empirical tests, particularly in cases where previous studies have insufficiently reported on factors affecting cross-border flows of the types of finance under consideration.