Most of the empirical evidence on how development of the financial sector i
mpacts on economic growth is in a cross-country context. This paper conside
rs the evidence from one country, New Zealand, which has in recent times be
en subject to substantial economic reforms, not least in the financial sect
or. Some valid long-run relationships are found between indicators of both
banking and stock market development and private savings, but rather more m
ixed results when considering either real GDP per capita or its growth rate
.