A Co-Integration Analysis of Interest Rate Spread and Corporate Bond Market Development in Selected African Economies

Simple item page
dc.creatorEke, O. P., Adetiloye, K. A., Adegbite,, Esther Olufunmilayo, Okoye, Lawrence U.
dc.date2017
dc.date.accessioned2025-04-01T14:51:35Z
dc.descriptionThis paper examines the relationship between interest rate spread and corporate bond market development in thirteen African economies comprising Botswana, Egypt Mauritius Nigeria, Tunisia, Cameroon, Kenya, Morocco, South Africa, Cote d’Ivorie, Ghana Namibia, Tanzania from 2004 and 2014 using fully modified ordinary least square (FMOLS) in an autoregressive distributive lag (ARDL) framework. Subsisting literature suggests that in bank-based economies, interest rate spread could adversely affect the potency of corporate bond market development; and thus limits the financial market competitiveness. The result provides evidence that corporate bond issue, as proxy for financial development is negatively influenced by interest rate gap in the short and long term. The result affirms the ‘group interest’ theorem in these African economies leading to a deterrent in competitive financial development. The ECM coefficient satisfies a priori expectation, affirms the short run dynamic relationship, which implies long run equilibrium from the annual speed of adjustment, which is about 100 percent. The paper suggests policy recommendations for the reduction in interest rate, and thus the spread to encourage the growth of corporate bond issues for a market-led financial development
dc.formatapplication/pdf
dc.identifierhttp://eprints.covenantuniversity.edu.ng/10199/
dc.identifier.urihttps://repository.covenantuniversity.edu.ng/handle/123456789/39558
dc.languageen
dc.subjectHB Economic Theory, HG Finance
dc.titleA Co-Integration Analysis of Interest Rate Spread and Corporate Bond Market Development in Selected African Economies
dc.typeConference or Workshop Item

Files

Original bundle

Now showing 1 - 1 of 1
No Thumbnail Available
Name:
Pages from 29th IBIMA Conference -4.pdf
Size:
947.66 KB
Format:
Adobe Portable Document Format
Download

Collections

EPrint