Linear and non-linear ARDL estimation of financial innovation and economic growth in Ghana

Randolph Nsor-Ambala and Godfred Amewu

Journal of Business and Socio-economic Development, 2022, vol. 3, issue 1, 36-49

Abstract: Purpose - This study aimed to explore the effect of Financial Innovation (FI) on economic growth in Ghana, with a dataset spanning 1960–2019, adopting a broader conceptualization of FI as the ratio of broad money to narrow money. Design/methodology/approach - The study employs a non-linear autoregressive distributed lag (ARDL) time series econometric model to estimate data from the World Bank (1960–2019). Findings - There is no evidence that FI significantly impacts economic growth. This could be due to the early and strict regulation of the financial technology (FIN-TECH) sector and the general inconclusiveness of the impact of financial development on economic growth. Practical implications - Policymakers must empirically explore the impact of early and strict regulation on the transformational impact of FI. Originality/value - The paper is among the first to apply a broader conceptualization of FI in estimating the impact of FI on economic growth.

Keywords: Economic growth; Financial innovation; FIN-TECH; Ghana; Non-linear autoregressive distributed lag; Regulation (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jbsedp:jbsed-09-2021-0128

DOI: 10.1108/JBSED-09-2021-0128

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