Marbuah, George
- Department of Economics, Swedish University of Agricultural Sciences
Research article - Peer-reviewed, 2013
Financial Development and Economic Growth in Ghana: Does the Measure of Financial Development Matter
Adu, George; Marbuah, George; Mensah, Justice Tei
Abstract
The aim of this paper is to investigate the long-run growth effects of financial development in Ghana. We find that the growth effect of financial development is sensitive to the choice of proxy. Both the credit to the private sector as ratios to GDP and total domestic credit are conducive for growth, while broad money stock to GDP ratio is not growth-inducing. The indexes created from principal component analysis confirmed the sensitivity of the effect to the choice of proxy. The findings here suggest that whether financial development is good or bad for growth depends on the indicator used to proxy for financial development.
Published in
Review of Development Finance
2013, Volume: 3, number: 4, pages: 192-203
Tei Mensah, Justice
- Department of Economics, Swedish University of Agricultural Sciences
- Department of Economics, Swedish University of Agricultural Sciences
SLU Authors
Sustainable Development Goals
SDG8 Decent work and economic growth
UKÄ Subject classification
Economics
Publication Identifiers
DOI: https://doi.org/10.1016/j.rdf.2013.11.001
Permanent link to this page (URI)
https://res.slu.se/id/publ/50788