African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4094


The association between financial development and economic development: A review

Syed Hamid Ali Shah1,2 and Attaullah Shah2*
  1Quaid-e-Azam College of Commerce, University of Peshawar, Pakistan. 2Institute of Management Sciences, Peshawa,r Pakistan.
Email: [email protected]

  •  Accepted: 04 November 2011
  •  Published: 30 December 2011



This paper presents an overview of the theoretical and related empirical literature on the association between financial system development and economic growth. It describes the role of financial system development in economic growth at the macro level, both theoretically and empirically. It also describes briefly the relationship of corporate finance and firm performance. It finally concludes the review and presents some policy implications in view of the reviewed literature.


Key words: Financial development, growth, financial system.