Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141904
Authors: 
Owusu, Erasmus L.
Odhiambo, Nicholas M.
Year of Publication: 
2015
Citation: 
[Journal:] Contemporary Economics [ISSN:] 2084-0845 [Publisher:] Vizja Press & IT [Place:] Warsaw [Volume:] 9 [Year:] 2015 [Issue:] 2 [Pages:] 181-192
Abstract: 
This paper examines the relationship between financial sector reforms and sustainable economic growth in Ghana. Employing the autoregressive distributed lag (ARDL) bounds testing approach and using GDP per capita as a growth indicator, this paper establishes a long-run relationship between economic growth and financial reforms, which is represented by an index calculated using principal component analysis (PCA). The paper finds that in the long run, financial sector reforms have an insignificant impact on economic growth in Ghana. This supports numerous past studies that have reported mixed or inconclusive results on the effects of financial reforms on economic growth. The paper concludes that increase in capital stock, not financial sector policy reforms, affects economic growth in Ghana. This paper therefore recommends an increase and modernization of capital stock in order to promote real sector growth in Ghana.
Subjects: 
Africa
Ghana
Economic Growth
Financial Sector Reforms
ARDL Bounds Testing Approach
JEL: 
C32
G12
O16
O47
Persistent Identifier of the first edition: 
Document Type: 
Article
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