The human brain is localized and distributed. On the one hand, each cognitive function tends to involve one hemisphere more than the other, also known as the principle of lateralization. On the other hand, interactions among brain regions in the form of functional connectivity (FC) are indispensable for intact function. Recent years have seen growing interest in the association between lateralization and FC. However, FC metrics vary from spurious correlation to causal associations. If lateralization manifests local processing and causal network interactions, more causally valid FC metrics should predict lateralization index (LI) better than FC based on simple correlations. The present study directly investigates this hypothesis within the activity flow framework to compare the association between lateralization and four brain connectivity metrics: correlation-based FC, multiple-regression FC, partial-correlation FC, and combinedFC. We propose two modeling approaches: the one-step approach, which models the relationship between LI and FC directly, and the two-step approach, which predicts the brain activation and calculates the LI. Our results indicated that multiple-regression FC, partial-correlation FC, and combinedFC could significantly improve the model prediction compared to correlation-based FC, which was consistent in a spatial working memory task (typically right-lateralized) and a language task (typically left-lateralized). The one-step and two-step approach yielded similar conclusions. In addition, the finding was replicated in a clinical sample of schizophrenia (SZ), bipolar disorder (BP), and attention deficit hyperactivity disorder (ADHD). The present study suggests that the causal interactions among brain regions help shape the lateralization pattern.