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Bank Competition, Stock Market and Economic Growth in Ghana


  • Stephen Asante
  • Daniel Agyapong
  • Anokye M. Adam


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.

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  • Stephen Asante & Daniel Agyapong & Anokye M. Adam, 2011. "Bank Competition, Stock Market and Economic Growth in Ghana," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 2(4), pages 33-41, November.
  • Handle: RePEc:jfr:ijba11:v:2:y:2011:i:4:p:33-41

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    References listed on IDEAS

    1. Obstfeld, Maurice, 1994. "Risk-Taking, Global Diversification, and Growth," American Economic Review, American Economic Association, vol. 84(5), pages 1310-1329, December.
    2. Nicola Cetorelli & Philip E. Strahan, 2006. "Finance as a Barrier to Entry: Bank Competition and Industry Structure in Local U.S. Markets," Journal of Finance, American Finance Association, vol. 61(1), pages 437-461, February.
    3. Shaffer, Sherrill, 1989. "Competition in the U.S. banking industry," Economics Letters, Elsevier, vol. 29(4), pages 321-323.
    4. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    5. Stijn Claessens & Luc Laeven, 2003. "Financial Development, Property Rights, and Growth," Journal of Finance, American Finance Association, vol. 58(6), pages 2401-2436, December.
    6. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 717-737.
    7. Pagano, Marco, 1993. "Financial markets and growth: An overview," European Economic Review, Elsevier, vol. 37(2-3), pages 613-622, April.
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    1. repec:mth:jsss88:v:3:y:2016:i:2:p:217-235 is not listed on IDEAS
    2. repec:aae:journl:v:12:y:2016:i:3:p:85-111 is not listed on IDEAS
    3. repec:eee:jebusi:v:96:y:2018:i:c:p:15-41 is not listed on IDEAS
    4. repec:rbs:ijfbss:v:6:y:2017:i:3:p:51-69 is not listed on IDEAS

    More about this item


    Bank Competition; Stock Market; Cointegration; ARDL;


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