<abstract xmlns="http://www.w3.org/1999/xhtml">

<bold>Research background:</bold> The traditional function ascribed to a modern financial institution is to mobilize resources among the two units (surplus and deficit) of the economy. This can be achieved when financial institutions wake up to this responsibility and act as the pillar upon which other institutions can rely on.
<bold>Purpose:</bold> This study examined the impact of bond market development on the growth of the Nigerian economy from 1986–2018.
<bold>Research methodology:</bold> Data were analysed using the co-integration bounds test approach while the robustness of the estimates was also checked.
<bold>Results:</bold> Government bond exhibited an insignificant positive relationship; corporate bond and value of bond traded were positive and statistically significant (prob. &lt;0.05) while bond yield indicated a negative relationship with the growth of the Nigerian economy.
<bold>Novelty:</bold> The study found that corporate bond and the value of bond traded were the major variables that increased the depth of bond market development in Nigeria. Therefore, policymakers in Nigeria should encourage the issuance of more corporate bonds to further enhance the efficiency of bond markets development.
</abstract>

Research background: The traditional function ascribed to a modern financial institution is to mobilize resources among the two units (surplus and deficit) of the economy. This can be achieved when financial institutions wake up to this responsibility and act as the pillar upon which other institutions can rely on.
Purpose: This study examined the impact of bond market development on the growth of the Nigerian economy from 1986–2018.
Research methodology: Data were analysed using the co-integration bounds test approach while the robustness of the estimates was also checked.
Results: Government bond exhibited an insignificant positive relationship; corporate bond and value of bond traded were positive and statistically significant (prob. <0.05) while bond yield indicated a negative relationship with the growth of the Nigerian economy.
Novelty: The study found that corporate bond and the value of bond traded were the major variables that increased the depth of bond market development in Nigeria. Therefore, policymakers in Nigeria should encourage the issuance of more corporate bonds to further enhance the efficiency of bond markets development.

Impact of Bond Market Development on the Growth of the Nigerian Economy

Department of Finance, Faculty of Management Sciences

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

{"article-title":"Impact of Bond Market Development on the Growth of the Nigerian Economy"}

Research background: The traditional function ascribed to a modern financial institution is to mobilize resources among the two units (surplus and deficit) of...

Impact of Bond Market Development on the Growth of the Nigerian Economy

Published Online: Jun 24, 2021

Page range: 60 - 75

Received: Feb 10, 2021

Accepted: Mar 10, 2021

DOI: https://doi.org/10.2478/foli-2021-0005

Keywords
bond market development, economic growth, corporate bond, value of bond traded, government bond, bond yield

© 2021 Michael O. Oke et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Impact of Bond Market Development on the Growth of the Nigerian Economy

Published Online: Jun 24, 2021

Page range: 60 - 75

Received: Feb 10, 2021

Accepted: Mar 10, 2021

DOI: https://doi.org/10.2478/foli-2021-0005

Keywordsbond market development, economic growth, corporate bond, value of bond traded, government bond, bond yield

© 2021 Michael O. Oke et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Keywords
bond market development, economic growth, corporate bond, value of bond traded, government bond, bond yield