Table 1 Variables and data sources
Variable | Acronym | Description | Exp. sign | Source | |
|---|---|---|---|---|---|
Bond market development (BMD) | Public bond market capitalization to GDP | GBMC | Total amount of domestic public debt securities issued (amount outstanding) in domestic market as a share of GDP | na | GFDD |
Macroeconomic determinants | Size of the economy | GDP | Real GDP at PPP | + | WDI |
Development stage of the economy: GDP per capita | GDPC | Real GDP per capita at PPP | + | WDI | |
Trade openness | EXP | Exports of goods and services as a share of GDP | + / − | WDI | |
Inflation | INF | Percentage change in consumer price index | − | WDI | |
Government consumption expenditure | GGFC | General government final consumption expenditure (% of GDP) | + / − | WDI | |
Financial determinants | Bank credits to GDP | CRED | Credits to private sector by commercial banks to GDP | + / − | WDI |
Banking concentration | CONC | Assets of three largest banks as a share of assets of all commercial banks (Herfindhal Concentration index) | − | GFDD | |
Stock market efficiency (stock market turnover ratio) | SMTR | Total value of shares traded during the period divided by the average market capitalization for the period | + | GFDD | |
Stock market size (stock market capitalization to GDP) | SMC | Value of listed shares to GDP | + | GFDD | |
Governance and institutional quality determinants | Corruption control | COR | Corruption perception index | + | ICRG |
Investment profile | IP | Investment Profile index | + | ICRG | |
Government effectiveness | GOV | Government effectiveness index | + | ICRG | |
Rule of law | RL | Rule of law index | + | ICRG |