The objective of the study is to empirically estimate the effects of Financial Liberalization (FL) on Economic Growth (EG) for a sample of twenty-five (25) developed and developing countries from 1995 to 2020. A multivariate regression model based on the augmented production function is applied to attain the study's objective. The Generalized Method of Moments (GMM) approach is being used, and for the robustness of the results, Robust Least Squares (RLS) and Random Effects (RE) are also applied. The study demonstrates that Financial Liberalization (FL) has a positive effect on the Economic Growth (EG) of the selected countries. Findings indicate that Financial Liberalization (FL) is promoting Economic Growth (EG). According to the results of the paired Dumitrescu Hurlin panel test, Financial Liberalization (FL) and Economic Growth (EG) are causally uni-directional and bi-directional linked. The study's findings indicate that the effectiveness of Financial Liberalization (FL) may differ across developed and developing nations. The nations with more productive capacity have encouraged better financial systems. Therefore, the poorer policy countries should put a strategy in place to improve the strength of their financial sectors.

Keywords: Financial Liberalization; Economic Growth