The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned
This study is a comparative analysis of the effects of money and capital markets on the Ghanaian economy covering the period from 1991 to 2017 using the dynamic Auto Regressive Distributed Lag (ARDL) framework. Empirical results confirmed the existence of a unique and stable long-run relationship be...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
SGH Warsaw School of Economics, Collegium of Economic Analysis
2020-04-01
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| Series: | Econometric Research in Finance |
| Online Access: | http://erfin.org/journal/index.php/erfin/article/view/89 |
| _version_ | 1818513178175209472 |
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| author | Isaac Azubuike Ogbuji Ekundayo Peter Mesagan Yasiru Olorunfemi Alimi |
| author_facet | Isaac Azubuike Ogbuji Ekundayo Peter Mesagan Yasiru Olorunfemi Alimi |
| author_sort | Isaac Azubuike Ogbuji |
| collection | DOAJ |
| description | This study is a comparative analysis of the effects of money and capital markets on the Ghanaian economy covering the period from 1991 to 2017 using the dynamic Auto Regressive Distributed Lag (ARDL) framework. Empirical results confirmed the existence of a unique and stable long-run relationship between the money market, capital market and economic growth. In respect of money market indicators, findings confirmed that monetary policy and treasury bills rate have had negative but significant impact on growth in the short- and long-run respectively. More so, total liquidity negatively and significantly influenced the Ghanaian economy both in the short- and in the long run. Both market capitalization and total value of stock traded, as proxies of capital market, had positive and significant effects on short-run growth, while both indicators as well as stock market turnover negatively and insignificantly affected long-run growth. This means that capital market exerts a short-run impact on the country's economy, while money market exerts both short- and long-run impacts. The lesson relearned is that the money market propels the Ghanaian economy better than the capital market. |
| first_indexed | 2024-12-10T23:57:34Z |
| format | Article |
| id | doaj.art-eba3a4fb24a840269c2f03d9a02239b5 |
| institution | Directory Open Access Journal |
| issn | 2451-1935 2451-2370 |
| language | English |
| last_indexed | 2024-12-10T23:57:34Z |
| publishDate | 2020-04-01 |
| publisher | SGH Warsaw School of Economics, Collegium of Economic Analysis |
| record_format | Article |
| series | Econometric Research in Finance |
| spelling | doaj.art-eba3a4fb24a840269c2f03d9a02239b52022-12-22T01:28:33ZengSGH Warsaw School of Economics, Collegium of Economic AnalysisEconometric Research in Finance2451-19352451-23702020-04-0152The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons RelearnedIsaac Azubuike Ogbuji0Ekundayo Peter Mesagan1Yasiru Olorunfemi Alimi2Department of Finance, University of Lagos, Nigeria.Pan Atlantic University, Lekki, Lagos, Nigeria.Department of Economics, University of Lagos, Nigeria.This study is a comparative analysis of the effects of money and capital markets on the Ghanaian economy covering the period from 1991 to 2017 using the dynamic Auto Regressive Distributed Lag (ARDL) framework. Empirical results confirmed the existence of a unique and stable long-run relationship between the money market, capital market and economic growth. In respect of money market indicators, findings confirmed that monetary policy and treasury bills rate have had negative but significant impact on growth in the short- and long-run respectively. More so, total liquidity negatively and significantly influenced the Ghanaian economy both in the short- and in the long run. Both market capitalization and total value of stock traded, as proxies of capital market, had positive and significant effects on short-run growth, while both indicators as well as stock market turnover negatively and insignificantly affected long-run growth. This means that capital market exerts a short-run impact on the country's economy, while money market exerts both short- and long-run impacts. The lesson relearned is that the money market propels the Ghanaian economy better than the capital market.http://erfin.org/journal/index.php/erfin/article/view/89 |
| spellingShingle | Isaac Azubuike Ogbuji Ekundayo Peter Mesagan Yasiru Olorunfemi Alimi The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned Econometric Research in Finance |
| title | The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned |
| title_full | The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned |
| title_fullStr | The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned |
| title_full_unstemmed | The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned |
| title_short | The Dynamic Linkage between Money Market, Capital Market and Economic Growth in Ghana: New Lessons Relearned |
| title_sort | dynamic linkage between money market capital market and economic growth in ghana new lessons relearned |
| url | http://erfin.org/journal/index.php/erfin/article/view/89 |
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