Financial development is one of the important factors for the growth of economy. Despite its
importance, the relationship between financial development and economic still debated in
economic literature. Therefore, this paper examines empirically the long run relationship
between financial development and economic growth in 4 OIC countries over period 1990-2012.
The 4 OIC countries namely Jordan, Kuwait, Malaysia and Saudi Arabia analyzed using panel
unit root test and Pedroni co-integration approach. The analysis is carried out using domestic
credit to private sector to GDP as measurement of financial development, and have three control
variable such as government expenditure, investment and net export. The findings found a
positive long run relationship between financial development and economic growth, it also
support supply-leading hypothesis.