The paper examines the dynamic relationship of domestic credit and stock market liquidity on the economic growth of the Philippines from 1995 to 2018 applying the autoregressive distributed lag (ARDL) bounds testing approach to cointegration, together with Granger causality test based on vector error correction model (VECM). The ARDL model indicated a long-run relationship of domestic credit and stock market liquidity on GDP growth. When the GDP per capita is the dependent variable there is weak cointegration. Also, the Johansen cointegration test confirmed the existence of long-run relationship of domestic credit and stock market liquidity both on GDP growth and GDP per capita. The VECM concludes a long-run causality running from domestic credit and stock market liquidity to GDP growth. At levels, domestic credit has significant short-run causal relationship with GDP growth. As for stock market liquidity at first lag, has significant short-run causal relationship with GDP growth. With regards to VECM for GDP per capita, domestic credit and stock market liquidity indicates no significant dynamic adjustment to a new equilibrium if a disturbance occurs in the whole system. At levels, the results indicated the presence of short-run causality from stock market liquidity and GDP per capita. The CUSUMSQ plot complements the findings of the CUSUM plot that the estimated models for GDP growth and GDP per capita were stable.

Abstract
 1. Introduction
 2. Literature Review
    2.1. Financial Development-Economic Growth Nexus: Theoretical Background
    2.2. Domestic Credit-Economic Growth Nexus: Selected Evidence from Asia
    2.3. Stock Market Liquidity-Economic Growth Nexus: Selected Evidence from Asia
 3. Research Methods
    3.1. Data and Model Specification
 4. Results and Discussion
    4.1. Augmented Dickey-Fuller and Phillips-Perron Unit Root Tests Results
    4.2. Autoregressive Distributed Lag (ARDL) Model and Johansen Cointegration Results
    4.3. Granger Causality Based on Vector Error Correction Model (VECM) Results
 5. Conclusions
 References

• Abraham C. CAMBA, Jr.(Department of Economics, College of Social Sciences and Development, Polytechnic University of the Philippines) Corresponding Author
• Aileen L. CAMBA(Department of Economics, College of Social Sciences and Development, Polytechnic University of the Philippines)