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Does Stock Market Development Enhance Private Investment in Ghana?
ISSN: 2371 - 1655
Publisher: author
Does Stock Market Development Enhance Private Investment in Ghana?
Indexed in
Social Sciences
ARTICLE-FACTOR
1.3
Article Basics Score: 3
Article Transparency Score: 3
Article Operation Score: 3
Article Articles Score: 3
Article Accessibility Score: 3
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International Category Code (ICC):
ICC-0202
Publisher: Lifescience Global Inc.
International Journal Address (IAA):
IAA.ZONE/2371108781655
eISSN
:
2371 - 1655
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Abstract
The paper investigates the extent to which stock market development enhances private investment in Ghana. Quarterly times series data for the period 1991(Q1) to 2011(Q4) are used. Stock market development is proxy by market capitalization. The paper adopts the Dynamic Ordinary Least Squares (DOLS) method of estimation. The results for deposit interest rates, GDP per capita, and public investment confirm complementarity hypothesis, accelerator principle, as well as "crowding-in" effect for Ghana in the long-run in their respective cases. Market capitalization also increases private investment in the long-run. However, inflation reduces private investment. In the short-run, one quarter lag and two quarters lag values of private investment and public investment respectively increases private investment, while one quarter lag value of market capitalization reduces current levels of private investment. The paper recommends further developm...
