Based on 88 countries'panel data from 1990 to 2005 , we analyze the correlations between the financial structure ( bank and stock market ) and economic growth in all the 88 countries , in developed countries , and developing countries respectively . By using the panel unit root test and panel cointegration , the empirical research shows that the positive correlations between the financial structure and economic growth in developed countries are significant , but the coefficients are small . The positive correlations between the financial structure and economic growth in developing countries are significant , and the banks play a more important role in economic development than the stock market does in developing countries . This paper's conclusions are consistent with China's basic situation , that is , for a transition economy to transform into a mature market economy , a bank-based and market- supplemented financial structure is a justified choice .