Open AccessBank Competition, Stock Market and Economic Growth in Ghana
Author(s) -
Stephen Asante,
Daniel Agyapong,
Anokye M. Adam
Publication year - 2011
Publication title -
international journal of business administration
Language(s) - English
Resource type - Journals
eISSN - 1923-4015
pISSN - 1923-4007
DOI - 10.5430/ijba.v2n4p33
Subject(s) - granger causality , economics , stock market , ordinary least squares , competition (biology) , distributed lag , stock (firearms) , monetary economics , short run , econometrics , context (archaeology) , mechanical engineering , paleontology , ecology , engineering , biology
The paper empirically investigates the relationship between bank competition, stock market and economic growth in Ghana using time series data for the period between 1992 and 2009. Short and long run relationship were established within the frameworks of Granger causality and the Autoregressive Distributed Lag (ARDL)/ Dynamic Ordinary Least Square (OLS) approach respectively. It was found that bank competition and stock market development granger cause economic growth in Ghana. Also, in the long run, banking competition is good for economic growth. However, there is a disproportionate response of economic growth to stock market development. It is recommended that policy to promote banking competition should be vigorously pursued