Authors
Odongo Kodongo, Paul Mukoki, Kalu Ojah
Publication date
2023/4/1
Journal
Economic Modelling
Volume
121
Pages
106230
Publisher
North-Holland
Description
Infrastructure development and it's financing have featured jointly in the economic development discourse. We consider the linkages between the two in the African context by examining the potential role of the region's fledgling bond markets in mobilizing resources to bridge its notorious infrastructure gap (IG). Applying a battery of econometric tests on 40 countries covering 2003–2018, we document robustly negative and nonlinear relationships between bond market development and IG (and, by extension, infrastructure financing deficit). Furthermore, these fledgling government and corporate bond markets play a complimentary role in financing vital infrastructures; with corporate bond markets interestingly eliciting greater reduction in IGs than government bond markets. In the future, African governments should implement policies that promote the development of both sovereign and corporate bond markets, with a …
Total citations
2023202435