Dissertations and Theses

Date of Award


Document Type



Economics and Business

First Advisor

Peter Chow

Second Advisor

Yan Zhao


Financial Development, Economic Growth, GMM model


This paper purposes to discuss the relationship between the financial development and economic growth. In the past, most studies related to the influence of financial development on economic growth used cross-sectional analysis or time series analysis. However, the cross-sectional analysis cannot explain the long-term trend of the time series, and the time series is unable to explain the multiple samples of the cross-section. Based on Arellano and Bond (1991), and Arellano and Bover (1995), this paper utilizes the panel data model to discuss financial development and economic growth. The results point out that bank credit in total GDP and capitalization of stock market show significantly positive related with economic growth. Therefore, we can conclude that the economic growth of the country will improve when the financial development progresses.

Available for download on Sunday, May 18, 2025