Publication
Title
Local currency bond market development in Sub-Saharan Africa : a stock-taking exercise and analysis of key drivers
Author
Abstract
This article studies the current state and drivers of government local currency bond market (LCBM) development in Sub-Saharan Africa. We first show that, increasingly, African governments issue fixed-rate local currency bonds with tenors of ten years and more on a regular basis. However, African LCBMs are also often marked by illiquidity, very few corporate securities, and narrow, bank-dominated investor bases. Second, we present an econometric analysis of the drivers of African government LCBMs based on a new high-quality, OECD-compiled panel dataset. LCBM capitalization is found to be correlated negatively with governments fiscal balance and inflation, and positively with common law legal origins, institutional quality and democracy.
Language
English
Source (journal)
Emerging markets finance & trade. - Armonk, N.Y.
Publication
Armonk, N.Y. : 2016
ISSN
1540-496X [print]
1558-0938 [online]
Volume/pages
52:5(2016), p. 1167-1194
ISI
000372890000009
Full text (Publisher's DOI)
Full text (open access)
The author-created version that incorporates referee comments and is the accepted for publication version Available from 30.06.2017
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identification
Creation 06.11.2015
Last edited 17.06.2017
To cite this reference