What is the impact of financial depth on economic growth within middle income countries?

This paper utilizes the Least Squares Dummy Variables (LSDV) technique in investigating effect of financial depth on economic growth within a sample middle-income countries, over period 2005–2017. The research finds that has negative impact real GDP countries. result is robust to use alternative measures depth, per capita as proxy for growth, inclusion dummy variables control 2007–2010 global crisis, exclusion countries with high average well across income levels. Based its findings, this study recommends need regulations ensure credit facilities domestic institutions are channeled towards productive investments rather than debt servicing.