Financial development and economic growth

The aim of the study is to analyse the ampirical interaction between the development of financial system and economic growth, which is mentined frequently in the theory. The study is started with theoretical literature researching. 23 developing countries in 1995?2006 which have the relationship between financial development and economic growth that are analyzed with panel data method . The results suggest that there is a negative relationship between the real economic growth, M2/Gdp, Margin and Financial freedom index. When there is a positiverelationship between the real economic growth and capitalization, there is no relationship between economic growth and private sector credit.As a result of findings, when there is a positive impact capital market development to economic growth, the savings haven?t mobilized to ınvestment in the banking system. Due to the fragile financial system, financial freedom has negative impact oneconomic growth, so it is reached that the implementation of structural reforms are needed.