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After independence in 1957, Ghana's economy was characterized by a massive involvement of the state in almost every sector of the economy, which resulted in the public sector completely dominating production activities and formal employment. By the early 1980s, the economy had witnessed long period of economic decline that manifested itself in low or negative GDP (Gross Domestic Product) growth, falling export revenue, and deteriorating infrastructure. Additionally, most of the state enterprises were faced with poor financial performance and low productivity culminating in increasing burden of subsidy costs for government. As part of the globalization efforts, the Ghana Stock Exchange (GSE) was incorporated in July 1989 and was subsequently recognized as an authorized stock exchange in October 1990 under the Stock Exchange Act of 1971 (Act 384). Though various studies have been done to assess the effects of globalization on different sectors of the Ghanaian economy, a lot still remain to be done on what effects, if any, has globalization had on the development of the stock market in Ghana.