TY  - JOUR
AU  - Eichengreen,Barry
AU  - Luengnaruemitchai,Pipat
TI  - Why Doesn't Asia Have Bigger Bond Markets?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10576
PY  - 2004
Y2  - June 2004
UR  - http://www.nber.org/papers/w10576
L1  - http://www.nber.org/papers/w10576.pdf
N1  - Author contact info:
Barry Eichengreen
Department of Economics
University of California, Berkeley
549 Evans Hall 3880
Berkeley, CA 94720-3880
Tel: 510/642-2772
Fax: 510/643-0926
E-Mail: eichengr@econ.Berkeley.edu

Pipat Luengnaruemitchai
E-Mail: lpipat@hotmail.com
AB  - Asia's underdeveloped bond markets and dependence on bank finance have been topics of concern since the crisis of 1997-8. In this paper we document that the slow development of Asian bond markets is a phenomenon with multiple dimensions. Larger country size, stronger institutions, less volatile exchange rates, and more competitive banking sectors tend to be positively associated with bond market capitalization. Asian countries' strong fiscal balances, while admirable on other grounds, have not been conducive to the growth of government bond markets. The results suggest that the region's structural characteristics and macroeconomic and financial policies account fully for differences in bond market development between Asia and the rest of the world. Once one controls for these characteristics and policies, in other words, there is no residual  Asia effect.'
ER  -