Financial Openness Induced Growth and Poverty Reduction

The study empirically investigates the impact of Ghana’s financial openness induced growth on poverty between 1970 and 2007 using econometric analysis. We find positive long run relationship between growth and financial liberalisation. We further investigate whether the financial liberalisation benefit poor. Again, we find positive relationship between growth and standard of living but disproportionate. We identify credit channel to be effective way to reduce poverty if policy intervention could be implemented. We argue that financial liberalization should be embarked with the poor in mind.