This study analyses the growth effects of financial market instruments in Ghana between 1991 and 2017. We use the Autoregressive Distributed Lags (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. The findings show the existence of a long-term relationship between both short- and long-term financial market indicators and economic growth. Also, the results confirm that long-term financial instruments perform better than 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, boost domestic investment, and improve growth in the long run.
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Dr. Ekundayo Peter Mesagan is a Senior Lecturer in the Department of Economics at the School of Management and Social Sciences, Pan-Atlantic University, Lagos, Nigeria. He holds a Ph.D. degree and a master’s degree (with distinction) in Economics from the University of Lagos, Nigeria. He also holds a First Class BSc degree in Economics from the Obafemi Awolowo University, Ile-Ife, Osun State, Nigeria. His research interests include Energy Policy, Industrial Economics, Macroeconomic Modelling, Natural Resources and Environmental Sustainability around the globe.
Dr. Isaac Azubuike Ogbuji is a lecturer in the Department of Finance at the University of Lagos, Nigeria. He holds a Ph.D. and a master’s degree in finance from the University of Lagos. His research interests include International Finance, Money and Capital Market Dynamics and Macroeconomic Modelling
Mr. Olorunfemi Yasiru Alimi is a Ph.D. candidate in the Department of Economics at the University of Lagos, Nigeria. He also holds a master’s degree in Economics from the University of Lagos and a BSc degree from the Olabisi Onabanjo University, Ogun State, Nigeria. His research interests include Energy Policy, Health and Environmental Outcomes, as well as Development Issues around the globe.
Dr. Anthonia Taye Odeleye is a Senior Lecturer in the Department of Economics at the University of Lagos, Nigeria. She holds a Ph.D. degree in Economics from the University of Ibadan, and a master’s degree in Economics from the University of Lagos. She also holds a BSc degree from the Ondo State University in Nigeria. Her research interests include Corporate Governance Issues, Education, Human Capital Advancement, and Development Issues around the globe.