CEU Electronic Theses and Dissertations, 2018
| Author | Mahara, Diksha |
|---|---|
| Title | Bond Market Development and Economic Growth: Experience of East Asian Economies. |
| Summary | Prior to Asian financial crisis of 1997, East Asian economies grew at a remarkable speed with industry-led development strategy yet with little scope of capital market development. Experience of Asian crisis shaped the regional cooperation to build structure for long term capital markets, which led to strong tailwinds of policy structures through ASEAN Plus Three (APT) to promote bond financing. In this regard, this study uses Autoregression model, first difference of panel regression and granger causality to i) determine the direction of causality between bond market development and economic growth ii) analyze the effect of bond market development on economic growth for ten East Asian economies for the period of 2004-2016. Two categories of bond market size are used to determine bond market development, namely local currency bond market and foreign currency bond market to explore the bond market development. The result shows that while bond market has positive and significant effect on economic growth in the regional economies, it was also discovered that the causality flows from economic growth to bond market development. It is recommended that with continued development of capital markets, economic growth could continue in same path while at the same time, economic growth policies should bring greater emphasis to capital market deepening for strengthening symbiotic relationship between bond markets and growth of the region. Keywords: Bond market development; Economic growth, East Asia, ASEAN Plus three |
| Supervisor | Lacourbe Paul |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2018/mahara_diksha.pdf |
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