The impact of financial reforms and financial development on an economy has received considerable attention over the recent past. According to McKinnon and Shaw, financial liberalization policy and, in particular, interest rate deregulation is a means for achieving high economic growth by boosting savings and investments. This paper aims to investigate the long‐run relationship between financial liberalization and economic growth in Liberian as articulated by McKinnon and Shaw's theory. The study employed time series data spanning from 1980 to 2016 and dataset was sourced from World Development Indicators databases. The dataset was estimated using econometric techniques of Combined Co‐integration test, Dynamic Ordinary Least Squares, and robustness check of Fully Modified Ordinary Squares, and Canonical Co‐integration Regression, respectively. Results reveal, positive and significant coefficient of financial liberalization variables, thus supporting the McKinnon and Shaw hypotheses. Also, found long‐run Combined Co‐integration among the estimated models. Policy recommendation includes that policymakers should refrain from policy that will adversely affect deposit interest rates considering its immense impact on savings mobilization, gross investment, and economic growth. Furthermore, improving competition will compel deposit‐taking institutions to raise deposit interest rates in a bid to attract more depositors, thus reducing interest rates spread.