ISSN: 2056-3736 (Online Version) | 2056-3728 (Print Version)

Stock market and economic growth nexus in Ghana

Samuel Antwi, Mohammed Issah and Richard Kpodo

Correspondence: Mohammed Issah,

Department of Accounting, University of Professional Studies, Ghana

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The aim of this study is to determine the role of monetary policy on the stock market and economic growth nexus in Ghana. The study used annual time series macroeconomic and stock market data from the year 1990 to 2019. Secondary data was collected on Gross Domestic Product (GDP), market capitalization (MC), Commercial bank (CB), inflation (INF), labour (L), capital stock (K), and trade openness (TO). Inflation was measured with consumer price index (CPI), and broad money (M2) were examined. The ARDL cointegration bounce test approach was used. It was revealed that stock market development has a significant positive effect on economic growth both in the short and long run. The study also found a support for a positive and significant nexus between monetary policy and economic growth. Based on the results it is suggested that efforts must be mounted to increase the number of firms to be listed to promote liquidity and raise the size of the market via capitalization ratio.


  Stock Market, Economic Growth, Monetary Policy, Ghana


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