Date of Award

Fall 2022

Degree Type

Open Access Dissertation

Degree Name

Economics, PhD


School of Social Science, Politics, and Evaluation

Advisor/Supervisor/Committee Chair

Thomas Willett

Dissertation or Thesis Committee Member

Pierangelo De Pace

Dissertation or Thesis Committee Member

Levan Efremidze

Terms of Use & License Information

Terms of Use for work posted in Scholarship@Claremont.

Rights Information

© 2022 Mohanad Alsadoun


capital controls, foreign currency bond, local currency bond market

Subject Categories



A study of local currency bond market development determinants in Emerging Market Economies (EMEs) is considered important when most EMEs and developing countries are shifting from issuing long-term debt securities in foreign currency denominations to their respective local currencies. This dissertation discusses key factors that influence the development of the local currency bond market (LCBM) in emerging developing economies. This study uses three different models to examine the importance of various factors. A total of 26 countries have been examined, and their data revealed several interesting results. The results show that larger economic size, larger banking systems, greater trade openness, larger stock market, lower inflation, fiscal deficit, and stable exchange rate promote LCBM development. The results of this study support most of the previous research findings on LCBM in EMEs. Further, capital controls in general and specific controls on bonds have a negative impact on the development of LCBM. In addition, a continuous supply of government local currency bonds supports the development of private sector LCBM. However, government foreign currency bonds were found to have a negative impact on private-sector LCBM growth.



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Economics Commons