Investigating the effects of inflation rate on the yield of government bonds in developing countries
Investigating the effects of inflation rate on the yield of government bonds in developing countries
Subject Areas : Financial Knowledge of Securities Analysis
Mohsen mirzasaf 1 , Marjan Damankeshideh 2 , manizheh hadinejad 3 , Mohammad Reza Mirzaei Nejad 4
1 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
2 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran, Corresponding Author
3 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran
4 - Department of Economics, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
Keywords: economic factors, government bonds, inflation.,
Abstract :
Economic factors such as inflation, liquidity and foreign investments can greatly affect the demand for government bonds and thus their yield. In times of economic stability and low inflation, government bonds are more attractive to investors because they offer relatively safe and predictable returns. The purpose of this research is to investigate the effects of economic factors on the yield of government bonds in developing countries. The statistical population studied in this research includes selected countries of the world (developing) based on the availability of information on the countries under study in the period from 2000 to 2020. The results of the regression model analysis of soft panel transition showed that the effects of economic factors on the yield of government cooperative bonds in developing countries have a significant positive effect. Economic factors such as inflation, liquidity and foreign investments can greatly affect the demand for government bonds and thus their yield. In times of economic stability and low inflation, government bonds are more attractive to investors because they offer relatively safe and predictable returns. The purpose of this research is to investigate the effects of economic factors on the yield of government bonds in developing countries. The statistical population studied in this research includes selected countries of the world (developing) based on the availability of information on the countries under study in the period from 2000 to 2020.
