The Theory and Empirics of Financial Development in the East Asian Bond Markets

Bibliographic Data

ID22351943
AuthorsThomas Kemetmüller (corresponding author)
Year2014
Volume5
Issue1
Pages45-76
Publication date2014-11-23
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueVienna Journal of East Asian Studies (JOURNAL)
Journal identifiersISSN: 2521-702X • E-ISSN: 2521-7038
PublisherWalter de Gruyter GmbH (PUBLISHER • DE)
DOI10.2478/vjeas-2014-0003
OpenAlexW2905405956
LanguageEN
References cited29

The Asian financial crisis marked a turning point in financial development in East Asia that brought the development of bond markets within the focus of policy-makers. This paper tracks the benefits of an advanced bond market, the current state of the East Asian corporate and government bond markets and their rapid evolution since the Asian crisis. Subsequently, a multivariate model is used to determine the endogenous economic and institutional factors that drove growth in the region’s bond markets. The following findings may be noted: (1) growth in the government bond market was driven by the monetary sterilisation efforts of East Asian central banks in order to cope with excessive liquidity, (2) the government bond market may crowd out the corporate bond market, and (3) the corporate bond market grew particularly strongly during the global financial crisis

Bond · Bond market · Business · China · Corporate bond · East Asia · Economics · Financial crisis · Financial market · Financial system · Government bond · Macroeconomics · Market liquidity · Political science · Banking stability, regulation, efficiency · Credit Risk and Financial Regulations · Global Financial Crisis and Policies · Finance

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