Financial Determinants of Human Development in Developing Countries
African Governance and Development Institute WP/11/012
21 Pages Posted: 9 Sep 2014
Date Written: October 8, 2011
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.
Keywords: Banking; human development; developing countries; instrumental variables
JEL Classification: E00; G20; I00; O10
Suggested Citation: Suggested Citation