The Empirical Analysis of the Relation between the Financial Development and the Economic Growth in Thailand

Employing the Thailand Manufacturing Production Index as the proxy of the economic growth level, the sum of the loans of private sector, market capitalization of SET and Bonds outstanding as the proxy of the financial development level, we studied the relation between the Thailand economic growth level and the financial development level. We found the financial development level has a notable asymmetric non-linear impact to the economic growth level, when the two period lag financial development is below 6.06%, the financial development has a anxo-action to economic growth, when the two period lag financial development is above 6.06%, the financial development has a inhibition to economic growth.