The paper presents theoretical aspects of the relationship between financial market
development and economic growth, and its effect in the Euro-12 area in the years 1991–2008.
The first part of the paper also outlines results of selected empirical research of the influence
of financial market development on economic growth. A multi-equation econometric model
estimated by means of a classical method of least squares was usedand cointegration tests were
also carried out. An analysis of interdependencies between the two selected indicators shows that
there is a statistically significant relationship between the financial market development
and economic growth in the Euro-12 area in the examined period.