In this paper I investigate the relationship between financial depth and economic growth, particularly of the Asian region, trying to utilize the data in the most efficient manner via panel unit root tests and panel co-integration analysis. The long run relationship is estimated via Westerlund error correction based panel co-integration tests whereas for the short run relationship I have used simple OLS regression. For 10 developing countries of the Asian region, the empirical results provide evidence that there exists a short run relationship between financial depth and economic growth whereas there is absence of a long term relationship.
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