Development Stage of the Bond Market in Mongolia Among Asian Countries

Abstract

AbstractThis study aims to address the issue of bond market development by investigating the determinants of bond market development with a focus on Asian economies and by identifying the impediment factors to prevent its development in the Mongolian economy. This study contributes to the literature by enriching evidence of the determinants of bond market development with a focus on Asian economies with common characteristics such as those highly dependent on banking. Particularly, while only few studies have been conducted on an individual economy’s bond market, the strategic contribution is to identify Mongolia-specific factors to prevent bond market development among Asian economies. The estimation result shows that the two manageable variables, namely, bureaucracy quality and level of interest rate, are major determinants for both public and private bond market development in Asian economies. Moreover, these determinants are the main factors for preventing the Mongolian bond market from developing.KeywordsBond marketMongoliaAsian countriesBureaucracy qualityInterest rate