Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227968 
Year of Publication: 
2019
Series/Report no.: 
AGDI Working Paper No. WP/19/095
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
This study analyses the growth effects of financial market instruments in Ghana between 1991 and 2017. We use the ARDL bounds testing approach to analyse data on real GDP per capita, monetary policy rate, treasury bill rate, stocks traded, bank credits, stock turnover, market capitalisation, foreign direct investment, and gross investment. Findings show the existence of a long-run relationship between both short- and long-term financial market indicators and economic growth. Also, results confirm that long-term financial instruments perform better than the short-term instruments in boosting the country's economy in the short-run, while in the long-run, both short-term and long-term financial indicators positively impact economic growth in Ghana. We recommend that the bank of Ghana should consider lowering the bank rate further from the current annual rate of 16.0% to enhance bank credits, boosts domestic investment, and improve growth in the long-run.
Subjects: 
Financial Market Instruments
Market Capitalisation
Economic Growth
ARDL Bounds Test
JEL: 
E13
E43
E51
G20
O47
Document Type: 
Working Paper

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