The cross-country empirical literature on the finance-growth relationship has debated three propositions. These are (i) Financial deepening has a strong impact on the growth process (ii) Measures of financial “activity” rather than the “size” of the sector plays a more significant role...

The cross-country empirical literature on the finance-growth relationship has debated three propositions: (i) financial deepening has a strong impact on the growth process; (ii) measures of financial “activity†rather than the “size†of the sector plays a more significant...