Financial sector development and economic growth in New Zealand

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 .