Financial determinants of human development in developing countries

Simplice A., Asongu (2011): Financial determinants of human development in developing countries.

Abstract

Hitherto financial drivers of human development have been unexplored by the UNDP. This paper assesses determinants of human development from financial dynamics of depth, efficiency, size and activity on data from 38 developing countries. While the importance of financial activity, size and depth (in decreasing order) is significant for inequality adjusted human development, financial allocation efficiency significantly undermines welfare. As a policy implication results do not support financial allocation efficiency as a driver of human development.

• Item Type: MPRA Paper
• Language: English
• Keywords: Banking; human development; developing countries; instrumental variables
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General; I - Health, Education, and Welfare > I0 - General > I00 - General; E - Macroeconomics and Monetary Economics > E0 - General > E00 - General; G - Financial Economics > G2 - Financial Institutions and Services > G20 - General

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