Asst Professor Dept of Management Studies, Deen dayal Upadhyaya College University of delhi
Online published on 4 August, 2018.
The relationship between financial development and economic growth remains an enigma for the economists. Extensive review of the literature points out conflicting empirical evidence. This paper reviews through an empirical research the connections between the operation of financial system and economic growth. While subject to ample qualifications, preponderance of the results suggest that both financial intermediaries and markets matter for growth and that reverse causality is not driving this relationship alone. Results also vary depending on the choice of indicators, stage of development of the economy and kinds of tests used.
