BSc thesis


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Shifting paradigms in financial development: The rise of private housing bonds in the Philippines


Supervised by Dr Florence Dafe

January 2017 - May 2017

Housing bonds in Asia have continued to expand in recent years. However, the mortgage market remains rather heterogeneous and observing any trends at the regional level has proven to be difficult for now.

As developing countries gradually reach higher levels of economic development, private lenders begin to take on a more participative role in the mortgage-backed securities (MBS) market, potentially helping the state to achieve its goals in housing finance.

This paper hopes to examine the factors which explain the rise of private housing bonds in the Philippines. It posits that the country is undergoing a specific stage in financial development which is characterised by its imitative and adaptive response to economic opportunities. 


Extending from the works of Rethel and Sinclair (2014), Yu (1997; 1998), and Luedde-Neurath (1988), this paper argues that it is the tendency towards a more entrepreneurial state model that can best account for the rise of private housing bonds in the Philippines.

Using discourse analysis, three indicators will be used to understand this transition: institutional isomorphism, institutional adaptiveness, and new institutions. As this paper will later demonstrate, such behaviours are particularly influential in economic policy makingwhere the bond market has become a strategically important sector for housing finance.

Keywords: entrepreneurial state, mortgage-backed securitisation, the Philippines, private bond markets, financial system development, housing finance