Financial Development and Economic Growth: the Case of Developing Countries

One of the main important issues in financial management is In this study, we investigate the impact of financial development on economic growth in developing countries using an unbalanced panel data model for the period 1960-2004. The results indicate there is a positive and significant effect of financial development on economic growth of developing countries. The results are robust and are not sensitive with respect to other determinants of economic growth, different financial development proxies, different samples and different time periods.