The debate on the relationship between economic growth and financial development has been
steadily growing in these recent years. However, the existing theoretical and empirical literature provides
conflicting views in this respect. This paper proposes an empirical investigation of the nature of
this relationship in the Moroccan context. More precisely, it explores the cointegrating and the causality
issue between economic growth and financial development. The latter is measured by largely
used indicators. In particular, we use capital market proxy, in addition to the traditional indicators
of financial intermediation. The findings show that financial development explains significantly the
growth, but the direction of causality depends on the indicator used to measure the financial deepening
and the time horizon of analysis (short or long terms).
