The Study of Influence of the Level of Development of Financial Markets on Economic Development

Nowadays the problems of financial markets' development in emerging economies attract attention of many researchers. In this study we try to analyze the international experience of theoretical and empirical research in the linkage between the level of financial development and economic growth. Our analysis shows that in general the hypothesis of the influence of the efficiency of the financial sector on economic development is confirmed by historical data. Moreover, there is evidence that this linkage is causal, and its scale is statistically significant. In addition, in some cases, there is a reverse impact of the economic growth on the financial sector. Economic growth leads to an additional demand for financial intermediation services, which results in the development of the financial sector.