Assessing the Impact of Financial Development on Economic Growth in Ghana: an Empirical Evidence from 1992 to 2017 Using Multivariate Regression and Regression With Newey-West Standard Errors


Samuel Kofi Otchere , Winfred Okoe Addy , Godfred Anim ,

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Volume 8 - September 2019 (09)


The study examines the impact of financial development on economic growth in Ghana in a time-series study from 1992 to 2017. The study employed time-series methodologies such as multivariate regression and regression with Newey-west standard errors. The study concludes that domestic credit to the private sector (financial development) has a direct relationship or strong positive impact on economic growth in Ghana, but trade openness has a negative impact on economic growth meanwhile unemployment rate, inflation, and regulatory quality have an insignificant impact on economic growth in Ghana in the sample period. Moreover, the study recommends that the government should strengthen its efforts in creating the enabling environment to facilitate the provision of domestic credit to the private sector by the financial sector and also create avenues for easy accessibility of credit domestically due to its strong impact on economic growth


Financial development; Economic growth; Multivariate regression; Regression with Newey-West standard errors; Ghana


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