Financial development and economic growth in Ghana : does the measure of financial development matter?
By G. Adu, George Marbuah, J. Mensah. 2013
356 citations recorded by the source corpus.
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.
Subfields: Accounting, Economics and Econometrics, Information Systems
View Paper: https://www.semanticscholar.org/paper/5fb377d9d0dec3b92c419e69055d92a4f5b26d3a
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Citations in the corpus
- Does Financial Inclusion Spur Economic Growth in India? (2017, background): “…studies talked about the measurement of an index of financial development [like Chakraborty (2010); Hussain and Chakraborty (2012); Gounder (2012); Adu et al (2013), Nain and Kamaiah (2014), Lenka (2015)] but very few studies talk about the measurement of financial inclusion index [Arora, (2010);…”
- Effect of financial development on economic growth in sub-Saharan Africa (2018, background): “Financial Development, Growth Volatility and Information Asymmetry in sub-Saharan Africa: Does Law Matter? South African Journal of Economics, 85 (4), 570-588.”