This thesis uses a data set of 82 countries from 1960 to 2011 to re-estimate the Schumpeterian growth model of cross-country convergence with financial constraints, following Aghion et al. (2005) and check their implications. Our empirical analysis is consistent with Aghion et al. (2005) that a country with more than a critical level of financial development will converge to the world technology frontier growth rate and that countries below this critical level will have a lower growth rate. In addition, our estimated results suggest that in some cases, financial development might have a significant negative effect on the living standard (GDP per capita) among those converging countries, because the coefficient on financial development is always significantly negative in some regressions. We present evidence to support these results by various multi-country growth regressions, including variables measuring education attainment, population health, policy, geography, politics and institutions.