Wang, Ziyun2022-05-052022-05-052022https://hdl.handle.net/11299/227212This paper systematically examine the impact of financial development on economic growth through an empirical analysis of panel data for more than 150 major economies worldwide over the period 1990-2020. In particular, we discuss the heterogeneity of financial cycles (long-term) and financial volatility (short-term). Our empirical results show that: (1) financial cycles always have a positive effect on economic growth, while regardless of the stage of the financial cycle, the increase of financial volatility along with lower economic growth rates. (2) The relationship between financial growth and economic development shows a nonlinear and U-shaped characteristic. (3) The degree of marketization is positively correlated with economic growth.enFinancial CyclesFinancial VolatilityEconomic GrowthArticle