Investigating the Nexus between Stock Exchange and Economic Growth in Ghana
British Journal of Economics, Finance and Management Sciences
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.
Article published in the British Journal of Economics, Finance and Management Sciences, 2016
Stock market development, economic growth, human capital, inflation, Stock market development, econmoney supply, direct investment
British Journal of Economics, Finance and Management Sciences Vol. 11 (1)