Browsing by Author "Kamasa, Kofi"

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    Investigating the Nexus between Stock Exchange and Economic Growth in Ghana
    (British Journal of Economics, Finance and Management Sciences, 2016-03) Ofori-Abebrese, Grace; Kamasa, Kofi; Pickson, Robert Becker
    This study used ARDL model coupled with granger causality test to investigate the relationship between stock market development and economic growth in Ghana for the period from 1991 to 2011. The study revealed that stock market development has a negative impact on economic growth in the long-run and this was confirmed by the causality test that there do not exist any relationship between stock market development and economic growth in Ghana for the study period. Human capital and money supply have contributed positively to growth. Inflation and foreign direct investment have not shown to be deterministic variables to growth of the economy. The study concluded that operators of Ghana Stock Exchange should strategise well to attract more investors to the Stock Exchange. In addition, the independence of the Central Bank, further development of financial and money markets should be adhered to by the Bank of Ghana to facilitate the implementation of monetary policy in order to achieve price stability in the country.
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    Wagner or Keynes for Ghana Government Expenditure and Economic Growth Dynamics. A ‘VAR’ Approach
    (Journal of Reviews on Global Economics, 2015) Kamasa, Kofi; Ofori-Abebrese, Grace
    This paper analysed empirically the causal relationship between government expenditure growth and GDP growth in Ghana from 1980 – 2010. The study employed vector autoregressive (VAR)/Granger causality analysis developed by Sims (1980) and Granger (1969). The cointegration results provided evidence of a unique cointegrating vector. Granger causality test conducted revealed that causality exist only from GDP growth to government expenditure growth and not the vice versa. This implication supports Wagner’s law of expanding state activities for Ghana. This result means that in estimating government expenditure, GDP growth must be taken into account so as to avoid the problem of misspecification and biasness of estimates generated. The findings also suggest that government must focus on policies that would create the enabling environment for growth to thrive rather than increasing its expenditure with the aim of increasing GDP growth.