Abstract: This study investigates the effect of World Bank financing (IBRD and IDA) on economic performance in selected developing countries between 2005 and 2024. Using panel data from twelve developing economies, the research analyses the relationship between World Bank loan disbursements and major macroeconomic indicators such as GDP growth, debt-to-GDP ratio, fiscal balance, and gross capital formation. The analysis applies descriptive statistics, Pearson correlation, and fixed-effects UNIANOVA models to evaluate how World Bank funding influences economic outcomes. The results show that World Bank disbursements do not exhibit a statistically significant impact on GDP growth or investment trends. However, the findings indicate a meaningful relationship with increasing public debt levels and deteriorating fiscal balances in several borrowing nations. In addition, event study observations suggest that periods of higher disbursements are often followed by sustained increases in debt burdens without noticeable improvements in economic growth. Overall, the study adds to the broader discussion on the effectiveness of multilateral development financing and emphasizes the importance of stronger debt monitoring mechanisms and sustainable fiscal management in countries that rely on external financing.

Keywords: World Bank Financing, Economic Growth, Developing Countries, GDP Growth, Public Debt, Development Finance.

Downloads: | DOI: 10.17148/IARJSET.2026.13261