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<p>This study investigates the role of sectoral effects in the financial development-international trade nexus using time series data from Ghana for the period 1960 to 2017. Our evidence from the autoregressive distributed lag (ARDL) estimates indicates that while the effect of sectoral value additions on trade is conditional on the proxy of financial development, financial development significantly promotes trade in both the long- and short-run, regardless of the proxy. Moreover, even after accounting for sectoral value additions, finance positively affected international trade. On the moderation front, we observe that increased agricultural value additions mitigate the beneficial impact of financial development on international trade, whereas increased service value additions magnify the beneficial effects. Thus, to boost international trade in Ghana, policymakers should prioritise fostering complementarity between the industrial, agricultural, service, manufacturing, and financial sectors.</p>
</abstract>

This study investigates the role of sectoral effects in the financial development-international trade nexus using time series data from Ghana for the period 1960 to 2017. Our evidence from the autoregressive distributed lag (ARDL) estimates indicates that while the effect of sectoral value additions on trade is conditional on the proxy of financial development, financial development significantly promotes trade in both the long- and short-run, regardless of the proxy. Moreover, even after accounting for sectoral value additions, finance positively affected international trade. On the moderation front, we observe that increased agricultural value additions mitigate the beneficial impact of financial development on international trade, whereas increased service value additions magnify the beneficial effects. Thus, to boost international trade in Ghana, policymakers should prioritise fostering complementarity between the industrial, agricultural, service, manufacturing, and financial sectors.

Financial Development-International Trade Nexus in Ghana: The Role of Sectoral Effects

Kwame Nkrumah University of Science and Technology

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This study investigates the role of sectoral effects in the financial development-international trade nexus using time series data from Ghana for the period...

Financial Development-International Trade Nexus in Ghana: The Role of Sectoral Effects

Publié en ligne: 03 juin 2024

Pages: 7 - 30

DOI: https://doi.org/10.2478/zireb-2024-0001

Mots clés
International trade, financial development, Ghana, sectoral value additions, ARDL

© 2024 Kwadwo Boateng Prempeh et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Financial Development-International Trade Nexus in Ghana: The Role of Sectoral Effects

Publié en ligne: 03 juin 2024

Pages: 7 - 30

DOI: https://doi.org/10.2478/zireb-2024-0001

Mots clésInternational trade, financial development, Ghana, sectoral value additions, ARDL

© 2024 Kwadwo Boateng Prempeh et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Mots clés
International trade, financial development, Ghana, sectoral value additions, ARDL