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Are bond markets, economic growth, and institutional quality related? Evidence from VECM estimation

Author

Listed:
  • Rudra P Pradhan

    (Indian Institute of Technology Kharagpur)

  • Nidhi Aggarwal

    (Virginia University of Lynchburg)

  • Rebecca Abraham

    (Nova Southeastern University)

Abstract

This study investigates the interrelationships between bond markets, economic growth, and institutional quality of middle-income countries from 2005 to 2020. We find that economic growth and institutional quality explain bond markets in the long run and short run. We find that there is an association between institutional quality, economic growth, bond market development.

Suggested Citation

  • Rudra P Pradhan & Nidhi Aggarwal & Rebecca Abraham, 2023. "Are bond markets, economic growth, and institutional quality related? Evidence from VECM estimation," Economics Bulletin, AccessEcon, vol. 43(1), pages 355-365.
    • Handle: RePEc:ebl:ecbull:eb-22-00712
    as

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    References listed on IDEAS

    as
    1. Rudra P. Pradhan & Mak B. Arvin & Sara E. Bennett & Mahendhiran Nair & John H. Hall, 2016. "Bond Market Development, Economic Growth and Other Macroeconomic Determinants: Panel VAR Evidence," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 23(2), pages 175-201, June.
    2. Law, Siong Hook & Azman-Saini, W.N.W. & Ibrahim, Mansor H., 2013. "Institutional quality thresholds and the finance – Growth nexus," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 5373-5381.
    3. Uchida, Hirofumi & Satake, Mitsuhiko, 2009. "Market discipline and bank efficiency," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 19(5), pages 792-802, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    bond markets; economic growth; institutional quality; middle-income countries;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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