Adam, Anokye M. and Tweneboah, George (2008): Foreign Direct Investment and Stock market Development: Ghana’s Evidence. Forthcoming in: International Research Journal of Finance and Economics , Vol. 1, No. 27 (May 2009)
Download (123kB) | Preview
Using multivariate cointegration and error correction model, this paper examines the impact of Foreign Direct Investment (FDI) on the stock market development in Ghana. Our results indicate that there exists a long-run relationship between FDI, nominal exchange rate and stock market development in Ghana. We find that a shock to FDI significantly influence the development of stock market in Ghana.
|Item Type:||MPRA Paper|
|Original Title:||Foreign Direct Investment and Stock market Development: Ghana’s Evidence|
|Keywords:||Foreign Direct Investment and Stock market Development: Ghana’s Evidence|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F20 - General
C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C50 - General
A - General Economics and Teaching > A1 - General Economics > A11 - Role of Economics; Role of Economists; Market for Economists
|Depositing User:||Anokye M. Adam|
|Date Deposited:||07. Dec 2008 15:13|
|Last Modified:||12. Feb 2013 13:58|
Demirguc-Kunt, A. and R. Levine, 1996. ‘Stock Market Development and Financial Intermediaries:Stylized Facts’, World Bank Economic Review, 10(2): 291–321.
Engle, R. F. and C. W. J. Granger, 1987. Cointegration and Error Correction: Representation, Estimation and Testing. Econometrica 55, 251–276.
Errunza, V.R., 1983. “Emerging Markets - A New Opportunity for Improving Global Portfolio Performance”, Financial Analysts Journal, Vol. 39 (5), 51-58.
Garcia, V.F. and L. Liu, 1999. ‘Macroeconomic Determinants of Stock Market Development’,Journal of Applied Economics, 2(1): 29–59.
GIPC (2007), GIPC Quarterly Report, January 2007, Accra; Ghana Investment Promotion Centre.
Goldstein, M., and M.S. Khan, 1976. “Large Versus Small Price Changes and the Demand for Imports.” IMF Staff Papers 23, 200-225.
 Granger 1981 Granger, C. W. J., 1981, Long memory relationships and the aggregation of dynamic models, Journal of Econometrics 14, 227-38.
Granger, C.W.J., 1986. “Developments in the Study of Cointegrated Economic Variables”, Oxford Bulletin of Economics and Statistics 48, 213-27.
GSE (1995), GSE Quarterly Report, March 1995, Accra; Ghana Stock Exchange
GSE (2007), GSE Quarterly Report, June 2007, Accra; Ghana Stock Exchange.
IMF, 1993. Balance of Payments Manual: Fifth Edition (BPM5), Washington: International Monetary Fund.
IMF, 2008. “International Financial Statistics September 2008” Online Version, Washington: International Monetary Fund
Johansen, S., 1991. “Estimation and Hypothesis Testing of Cointegrating Vectors in Gaussian Vector Autoregressive Models”, Econometrica 59, 1551-1580.
Johansen, S. 1988. “Statistical Analysis of Co-integrating Vectors”. Journal of Economic Dynamics and Control, 12, 231-254.
MacKinnon, J.G., A.A. Haug, and L. Michelis, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, 14, 563-577.
Pesaran, H and Y. Shin, 1997. “Generalised Impulse Response Analysis in Linear Multivariate Models”, Economics Letters, 58, 17-29.
Singh, A., 1997. ‘Financial Liberalisation, Stock Markets, and Economic Development’, TheEconomic Journal, 107(May): 771–82.
UNCTAD, 2008. World Investment Report 2008, United Nation Conference on Trade and Development.
 World Bank, 2008. World Development Indicators April 2008. Washington: The World Bank.
Yartey, C. A. and C. K. Adjasi, 2007. “Stock Market Development in Sub-Saharan Africa: Critical Issues and Challenges” IMF Working Paper 07/209. Washington DC: International Monetary Fund.
Yartey, C. A., 2008. “The Determinants of Stock Market Development in Emerging Economies: Is South Africa Different” IMF Working Paper 08/38. Washington DC: International Monetary Fund.