Abstract

This article fills a gap of literature on the relationship between education and the stock market. We adopt the modified Calderon-Rossell model to estimate the effect of quality of human capital on Capital market. Four different techniques were used to check the robustness of the result. Of all the techniques adopted Newey-West to account for different characteristics of emerging economies turnout to be more efficient and appropriate. The article finds that the quality of human capital is an important determinant of stock market development in emerging market countries. Policy makers in emerging economies must seek to implement policies that would make education accessible and meaningful to the populace. By this Free Senior High School policy in Ghana is in the right direction for capital market development.

Key words: Human Capital, Stock Market, GDP.