Abstract:
The paper empirically investigates the relationship between bank competition, stock market and economic growth in
Ghana using time series data for the period between 1992 and 2009. Short and long run relationship were established
within the frameworks of Granger causality and the Autoregressive Distributed Lag (ARDL)/ Dynamic Ordinary Least
Square (OLS) approach respectively. It was found that bank competition and stock market development granger cause
economic growth in Ghana. Also, in the long run, banking competition is good for economic growth. However, there is a
disproportionate response of economic growth to stock market development. It is recommended that policy to promote
banking competition should be vigorously pursued.
