Foreign Direct Investment and Stock Market Development: Ghana's Evidence

Adam, Anokye M.; Tweneboah, George

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Foreign Direct Investment and Stock Market Development: Ghana's Evidence

International Research Journal of Finance and Economics, Vol. 26, pp. 178-185, 2009

12 Pages Posted: 26 Oct 2008 Last revised: 7 Apr 2009

See all articles by Anokye M. Adam

Anokye M. Adam

University of Cape Coast - School of Business

George Tweneboah

University of Leicester - School of Management

Abstract

Using multivariate cointegration and Innovation Accounting Methods, this paper examines the impact of Foreign Direct Investment (FDI) on stock market development in Ghana. The paper finds long-run relationship between FDI and stock market development in Ghana. Using impulse responses and Variance Decomposition from Vector Error Correction Model we find that shocks in FDI significantly influence the development of stock market in Ghana

Keywords: Stock Market Development, Foreign Direct Investment and Market Capitalization

JEL Classification: C50, F20, G20

Suggested Citation: Suggested Citation

Adam, Anokye M. and Tweneboah, George, Foreign Direct Investment and Stock Market Development: Ghana's Evidence. International Research Journal of Finance and Economics, Vol. 26, pp. 178-185, 2009, Available at SSRN: https://ssrn.com/abstract=1289843