Financial Development and Economic Growth: Review of Literature on Empirical Studies

The relationship between financial development and economic growth is a core issue of modern economics, whereas economists had disagreed with each other on this issue for a long time. Since 1990s, many foreign researchers have made empirical studies from various angles. Those researches are very helpful for us to understand the relationship between financial development and economic growth. Focusing on two main aspectsrelation between financial development and economic growth and that between financial system and economic growth, this paper makes a review of foreign literature on empirical studies.