How does financial development interact with economic growth in five ASEAN countries?

This study examines the causal relationship between financial development, liberalization and economic growth through technological innovation channel in five South East Asia countries during the period 1980-2012, using a fully modified ordinary least square estimation technique. We find that technological deepening is driven by deepening in the financial system and financial liberalization rather than changes in a country's market capitalization. We also find a negative effect from the financial openness, and a positive effect from financial deregulation.