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Title
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Local currency bond market development in Sub-Saharan Africa : a stock-taking exercise and analysis of key drivers
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Author
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Abstract
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| 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. |
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Language
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English
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Source (journal)
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Emerging markets finance & trade. - Armonk, N.Y.
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Publication
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Armonk, N.Y.
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2016
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ISSN
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1540-496X
[print]
1558-0938
[online]
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DOI
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10.1080/1540496X.2015.1073987
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Volume/pages
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52
:5
(2016)
, p. 1167-1194
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ISI
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000372890000009
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Full text (Publisher's DOI)
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Full text (open access)
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Full text (publisher's version - intranet only)
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