Bond Markets Development, Technology Penetration and Economic Growth Nexus in Transitional Markets
Keywords:
Panel Data, Transitional Markets, Technology, Bond Markets, GrowthAbstract
Objectives: The study explored two objectives in the context of transitional markets. Firstly, the impact of bond markets on the economy. Secondly, role of the complementarity between bond markets, technology and economy. Prior Work: Existing research work on the bond markets-economic growth and technology nexus produced results which are inconclusive and indecisive. Approach: Fully modified ordinary least squares (FMOLS), fixed-effects and system generalized methods of moments (GMM) were the panel methods employed. Panel data used ranges from 2007 to 2021. Results: In both models, bond market development significantly improved economic growth (system GMM, fixed effects) whereas the same results were noted in model 2 under FMOLS. FMOLS and system GMM (both models) shows that technology significantly enhanced economic growth and same results were observed under fixed effects, in model 2. All three econometric methods (both models) presented results indicating that economic growth was significantly enhanced by the complementarity element of the model. Implications: Bond markets and technological progress enhancement policies should be implemented by transitional markets to spur economic growth. Value: The conclusion is that bond markets and technology are vital elements of the economic growth process in transitional markets.
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