Financial integration has a positive impact on Ethiopian economic growth. Different researchers have found varying results on this topic, with some suggesting a negative influence. The relationship between financial integration and economic growth can be bidirectional. The impact of the financial sector on economic growth is categorized into four hypotheses: supply leading, demand following, bidirectional, and independent. The level of financial integration and the composition of financial flows play a role in these results. Despite debates, most economists agree that financial integration is beneficial for the economy.