Why Doesn't Asia Have Bigger Bond Markets?, Issue 10576

Front Cover
National Bureau of Economic Research, 2004 - Bond market - 43 pages
0 Reviews
Asia's underdeveloped bond markets and dependence on bank finance have been topics of concern since the crisis of 1997-8. In this paper we document that the slow development of Asian bond markets is a phenomenon with multiple dimensions. Larger country size, stronger institutions, less volatile exchange rates, and more competitive banking sectors tend to be positively associated with bond market capitalization. Asian countries' strong fiscal balances, while admirable on other grounds, have not been conducive to the growth of government bond markets. The results suggest that the region's structural characteristics and macroeconomic and financial policies account fully for differences in bond market development between Asia and the rest of the world. Once one controls for these characteristics and policies, in other words, there is no residual Asia effect.'

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.

Common terms and phrases