ABSTRACT
Financial policies in all ramifications constitute a means for promoting economic growth in developing countries. To best manipulate the financial variables to this end requires a knowledge of whether and how the variables affect growth. In very broad terms, they can be described to influence growth either by changing the quantum of investible resources or by affecting the efficiency of utilisation of a given quantum of resources or both.A few studies have examined the effects that financial variables have on the quantum of investible resources as an indirect way of identifying their effects on growth. A few others have directly related the financial indicators to growth. However, far fewer studies have investigated their effects on the efficiency of resource utilisation and this is one of the reasons which informs the present study, which endeavours to examine this relatively neglected aspect. In addition, we extend our consideration to a broader range of financial variables.
