A paradox of emerging government securities market development

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE

Research in International Business and Finance Pub Date : 2024-09-14 DOI:10.1016/j.ribaf.2024.102582

Tadashi Endo

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Abstract

Many governmental and international attempts to develop government securities markets (GSMs) in low-income economies have been unsuccessful. Common causes of the failures are a lack of understanding of the development dynamics of emerging GSMs and developmentally and locally suitable policies. Emerging GSMs tend to get trapped in a paradoxical market failure in which the market system cannot develop a GSM or core financial infrastructure. In contrast to advanced GSMs in which the government plays a minor role, emerging GSMs require the government to play a significant role in establishing and supporting a market structure that provides traders with “utilities” to facilitate trading. Using a multiplicative factor model and diagrams and referring to empirically observed development patterns of the Indian GSM, this study examined the effects of “utilities” and found that diminishing returns to utility explained the development dynamics of emerging GSMs. The analyses in this study also used the theories of club, consumer purchasing behavior, and diffusion of innovation. For better policy analyses and formulation for emerging GSM development, the study proposes a financial market utility hypothesis and a two-dimensional policy framework.

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新兴政府证券市场发展的悖论

许多政府和国际社会试图在低收入经济体发展政府证券市场（GSM），但都没有取得成功。失败的共同原因是缺乏对新兴政府证券市场发展动态的了解，以及缺乏适合发展和当地情况的政策。新兴 GSM 往往陷入自相矛盾的市场失灵，即市场体系无法发展 GSM 或核心金融基础设施。与政府只发挥次要作用的先进全球通用系统相比，新兴全球通用系统需要政府在建立和支持市场结构方面发挥重要作用，为交易者提供 "公用设施 "以促进交易。本研究使用乘法因子模型和图表，并参考经验观察到的印度全球通发展模式，研究了 "效用 "的影响，发现效用回报递减解释了新兴全球通的发展动态。本研究的分析还采用了俱乐部理论、消费者购买行为理论和创新扩散理论。为了更好地分析和制定新兴全球通发展政策，本研究提出了金融市场效用假说和二维政策框架。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Research in International Business and Finance BUSINESS, FINANCE-

CiteScore

11.20

自引率

9.20%

发文量

240

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