Title
Local currency bond market development in Sub-Saharan Africa : a stock-taking exercise and analysis of key drivers Local currency bond market development in Sub-Saharan Africa : a stock-taking exercise and analysis of key drivers
Author
Faculty/Department
Institute of Development Policy and Management
Publication type
article
Publication
Armonk, N.Y. ,
Subject
Politics
Economics
Source (journal)
Emerging markets finance & trade. - Armonk, N.Y.
Volume/pages
52(2016) :5 , p. 1167-1194
ISSN
1540-496X
ISI
000372890000009
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
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.
E-info
https://repository.uantwerpen.be/docman/iruaauth/280fe6/128556.pdf
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