The impact of bond market development on economic growth before and after the global financial crisis: Evidence from developed and developing countries
Deni Wahidin,
Alexandr Akimov and
Eduardo Roca
International Review of Financial Analysis, 2021, vol. 77, issue C
Abstract:
This paper investigates the impact of bond market development on economic growth before and after the global financial crisis in 44 selected countries. A dynamic model based on endogenous growth theory is employed for the study for the period 1990–2017. We find robust evidence that the global financial crisis has distorted the link between bond market development and economic growth: before the global financial crisis, the bond market's impact on economic growth was positive; after the global financial crisis, the evidence is mixed. The main finance–growth channel by which proceeds from the bond market are eventually allocated to the most productive investments appears to be broken.
Keywords: Bond market; Economic growth; Global financial crisis (search for similar items in EconPapers)
JEL-codes: G01 G10 O47 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:77:y:2021:i:c:s1057521921001952
DOI: 10.1016/j.irfa.2021.101865
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