This paper focuses on the following two issues. First, the paper investigates the extent to which financial development has contributed to economic growth in Korea. For this purpose, we introduce four well-known financial development indicators, and seek to find a long-run relationship between output growth and financial development. Second, the effects of financial repression on economic growth are examined. A financial repression index is constructed based on five related measures, and this index is augmented to the growth-finance equation. (The rest is omitted.)

I. Introduction

II. Overview of Financial Development in Korea

III. Finance and Growth Nexus: Long-run Causality
1. Methodology
2. Data
3. Empirical Results

IV. Conclusion

References

Appendix