The Effect of Financial Development on Economic Growth Countries ASEAN-4

Abstract

This study aims to determine the effect of financial development on economic growth in ASEAN-4 during 1999-2018. This study uses the regression method and panel approaches using the Fixed Effect Model method. This research uses the FEM quantitative method and uses a stata 13 estimation tool. The panel data regression results in this study indicated that financial development has a positive relationship with economic growth. This is evident from the three financial development proxies, which have a positive correlation with economic growth domestic credit to private sector, money broad variables, market capitalization and degree of openness to reflect the real sector. Keywords: financial development, degree of openness, economic growthJEL : G2, O11, O16