Does Finance Lead to Economic Growth? An Empirical Assessment of 12 Asian Economies

The paper describes tests of hypotheses from economic history concerning the significance of financial development as a determinant of economic growth. By invoking co-integration and causality tests for 12 representative countries that corroborate our analysis, evidence shows that the finance and growth relationship varies across Asian markets. Therefore, this study concludes that policy measures for infrastructure improvements should be taken into account to make financial sectors more vibrant to invigorate economic growth.