A great number of economists believe that financial development is the main reason of economic growth. Their witness is the industrial revolution which marks a major turning point in human history. One of the aspects of economic growth and being industrialized is the development of financial systems as a group of specialized institutions and organizations dealing with transfer of funds and acting as deposit and investment intermediaries.
However, although all countries have established such a specialized system, the comparative study of these systems shows a remarkable diversity in structures. The most important difference is that they are bank-based or market-based.
Here, we study the structure of financial systems and the way the degree of development of financial system influences the economic growth of the developed countries as well as the developing one. Results show that the financial system structure in developed countries is market-based while in developing countries it is as what is seen in a financial services approach.