Course Description
Course: Development Finance (Development Financial Mechanisms) - ECO483
Course Type: Free Elective Courses
Semester: 7th
Teaching Semester: Winter (A)
Prerequisite Courses: Economic Transformation and Development (ECO421)
Instructor: Paraskevi Boufounou
Aims and Objectives:
The aim of the course is familiarize students with the methods and basic tools of Development Finance. The course is divided into three parts.
In the first part, the historical evolution of the world development financing system’s architecture is presented. Furthermore, the role of its international, regional and national institutions/stakeholders is analysed.
In the second part, the main existing mechanisms and tools of development finance are presented (at both theoretical and applied level focusing on their impact on development), with special emphasis on Leasing, Value Chain Financing, Factoring/Forfaiting, Venture Capital, Mergers & Acquisitions, Private-Public Partnerships (PPPs) and Franchising.
In the third part, cyclical economy, inclusive finance and impact investing is introduced in the context of SDGs and ESGs and the Innovative Development Finance Mechanisms (IFDMs) are presented with emphasis on Crowdfunding, Diaspora Bonds, GDP-linked bonds and Green Bonds.
E-class is used.
A mixed evaluation system is applied, comprising of a project/essay assignment accompanied by classroom presentation
Content:
1. The Changing Architecture of Development Finance
2. Leasing
3. Factoring / Forfaiting Agencies
4. Value Chain Financing
5. Venture Capital
6. Mergers and Acquisitions (M&As)
7. Public-Private Partnerships (PPPs)
8. Franchising
9. Innovative Development Finance Mechanisms (IDFMs)
10. Crowdfunding
11. Green Bonds
12. Diaspora Bonds
13. Growth bonds (GDP-linked Bonds)
Bibliography:
1) D.Vassiliou & N.Ireotis (2008) "Financial Management: Theory & Practice", Rosili Publications
(Distributed by EYDOXOS)
2) P. Petrakis (2010) "Investment Evaluation",QUAESTOR Public. SOLE SHAREHOLDER LTD.
3) G. Mergos (2009) "Socio-Economic Evaluation of Investments and Policies", Benou Publications, Volume 1 Theory
4) L. Katseli, & Ch. Magoula (2002) "Macroeconomic Analysis and the Greek Economy", Publications Dardanos, Edition B.
Supporting Bibliography:
1) ΕU (2015) European Report on Development (ERD 2015) «Combining Finance and Policies to Implement a Transformative Post-2015 Development Agenda»
2) L. Katseli (2004) «Setting Priorities in Development Cooperation: A Short Overview of an Evolving Paradigm», Bruno Kriesky Forum for International Dialogue
3) M. Klein & T. Harford (2005) «Grants or Loans?», The World Bank, Public Policy for the Private Sector, Note No 287
4) D.Cohen, P.Jacquet & H.Reisen (2007) «Loans or Grants?», CEPR, January
5) D.Cohen, P.Jacquet & H.Reisen (2006) «Afler Gleaneagles : What role for loans in ODA?», OECD Development Center Policy Briefs
6) B. Clements, S. Gupta, A. Pivovarsky & E.R. Tiongson (2004) “Foreign Aid: Grants versus Loans”, Finance Development, Sept, pp.46-49
7) M.Odedokun (2004) “Multilateral and Bilateral Loans versus Grants: Issues and Evidence”, Special Issue World Economy, vol 27, no2, pp. 239-263
8) P. Nunnenkamp, R.Thiele & T.Wilfer (2005) «Grants versus Loans: Much Ado About (Almost) Nothing», Kiel Economic Policy Papers, no4
9) J.Winpenny (2005) «Guaranteeing Development? The Impact of Financial Guarantees», OECD Development Center Studies
10) N. Prasad (2006) «Privatisation Results: Private Sector Participation in Water Services After 15 Years», Development Policy Review, vol. 4, no 6, pp. 669-692