Financing via Bond Issuance and Implications for Economic Growth (Die Finanzierung ueber Anleihenemissionen und Zusammenhaenge zum Wirtschaftswachstum)
Kredit und Kapital, Vol. 38, No. 3, pp. 1-25, 2005
Posted: 19 Dec 2008 Last revised: 10 Jan 2009
Date Written: 2005
We investigate the relationship of both the net aggregated bond issuance volume and of the individual bond sectors (government, financial, corporate) and economic growth. We apply granger causalities to quarterly data over the 1994 to 2003 period for 15 European countries, the USA and Japan in order to test the relationship between bond market development and economic growth. Where we identify significant granger causalities, the tendency is as follows: there is a causality between economic growth and the net volume of public sector bond volume as well as between the net volumes of corporate and financial institutions' bond issues and economic growth.
JEL Classification: E44, O16, O40
Suggested Citation: Suggested Citation