The thesis analyzes the relationship between financial development and economic growth in Latin America, focusing on the presence of the supply-leading phenomenon. The financial sector's role in facilitating business transactions and its impact on economic growth is explored using growth equations and statistical analysis. The study includes two different financial development indicators and employs fixed effects models with instrumental variables to address endogeneity. The main finding suggests that there is limited support for the supply-leading phenomenon in Latin America, indicating a stronger case for the demandfollowing phenomenon in the region. This result differs slightly from the findings for the developed countries, where more evidence is found in favor of the supplyleading phenomenon. Additionally, the use of different financial development indicators yields contradictory conclusions regarding the relationship between financial development and economic growth. The thesis also highlights the importance of data quality and further research in the Latin American region to enhance the accuracy of the analysis. It emphasizes the need to consider other financial development indicators and control variables to gain a comprehensive understanding of the relationship between financial development and economic growth. Overall, the study sheds light on the complex relationship between financial development and economic growth in Latin America, providing valuable insights for policymakers and researchers in the region.