Bond markets and economic growth

Gerhard Fink, Peter Haiss, Sirma Hristoforova

Publication: Working/Discussion PaperWU Working Paper

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This paper examines the relationship between the development of the aggregate bond markets and real GDP in 13 highly developed economies. The recent interest in the ties between the real and the financial sector has usually been on the banking sector and the stock markets, rather ignoring the bond markets as a third essential source of external finance. We fill this gap by providing empirical evidence for causality patterns supporting the supply-leading approach in the USA, UK, Switzerland, Germany, Austria, the Netherlands and Spain over the 1950 to 2000 period. In the cases of Japan, Finland and Italy we find evidence of interdependence between bond market capitalization growth and real output growth. Granger causality test and co-integration approach are employed to support this conjecture. (author's abstract)
Original languageEnglish
Place of PublicationVienna
PublisherForschungsinstitut für Europafragen, WU Vienna University of Economics and Business
Publication statusPublished - 2003

Publication series

NameEI Working Papers / Europainstitut

WU Working Paper Series

  • EI Working Papers / Europainstitut

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