The Relationship among International Trade, Financial Development and Economic Growth

Abstract

In this study, the relationship among economic growth, international trade and financial development in Ghana is explored. The study uses annual time series data extracted from the World Development Indicators from 1997 to 2017. Findings from Ordinary Least Squares estimations show the net imports have a statistically significant negative relationship with economic growth while broad money has a positive but insignificant relationship with economic growth. Additionally, broad money is positively correlated to net imports. The study recommends that import substitution policies to reduce imports as well as a development of the Ghanaian financial market.