Financial Liberalization and Investment in Ghana: A Test of the McKinnon's Complementarity Hypothesis
Анотація
This paper tests the McKinnon complementarity hypothesis between money and investment in Ghana in a Vector Error Correction framework. The findings reveal that investment has a positive relationship with money demand, whilst domestic credit positively influences investment, suggesting complementarity between money and investment. However interest rate does not significantly influence money demand. In the short-run, though the interest rate has a positive relationship with investment it negatively influences money demand contrary to the McKinnon postulations. Hence the relationship between money and investment could not be attributed to a savings effect from an increase in money balances and interest rate liberalization.
Класифікація
Ідентифікатори
Рецензії (0)
Написати рецензіюРецензій ще немає. Будьте першим!
Схожі роботи
CLASSIFICATION OF THE BANK’S BUSINESS OPERATIONS FOR ACCOUNTING PURPOSES
Схоже за: Islamic Finance and Banking Studies · Monetary Policy and Economic Impact
Impact of public debt profile on economic growth: Evidence from Nigeria
Схоже за: Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact
The twin deficit hypothesis: the case of Bulgaria
Схоже за: Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact
Assessing Fiscal Sustainability in Ukraine: TVP and VAR/VEC Approaches
Схоже за: Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact
A small forward-looking inter-country model (Belarus, Russia and Ukraine)
Схоже за: Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact
Fiscal Policy Effects in Ukraine
Схоже за: Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact