Monetary Depth, Financial Depth, and the Human Development Index

Univ. of Illinois at Urbana/Champaign Office of Research Working Paper 01-0100

Posted: 7 Jun 2002  

Joseph E. Finnerty

University of Illinois at Urbana-Champaign - Department of Finance

Noel Brodsky

Eastern Illinois University - Department of Economics

Date Written: January 2001

Abstract

The relationship between economic development, human development and financial intermediation is examined using regression analysis. The Human Development Index (HDI) is used as a measure of the improvement of the human condition. Gross Domestic Product is used as a measure of the improvement in the economic condition. Various measures of money and financial market development are used to measure monetary and financial depth. A sample of 118 countries is divided into four subsamples ranging from highly developed to least developed countries based on GDP per capita. The findings suggest that development of financial market depth is important in explaining human development even before it becomes important in explaining economic development.

Keywords: Emerging markets, Financial intermediation

Suggested Citation

Finnerty, Joseph E. and Brodsky, Noel, Monetary Depth, Financial Depth, and the Human Development Index (January 2001). Univ. of Illinois at Urbana/Champaign Office of Research Working Paper 01-0100. Available at SSRN: https://ssrn.com/abstract=303389

Joseph E. Finnerty (Contact Author)

University of Illinois at Urbana-Champaign - Department of Finance ( email )

1206 South Sixth Street
1206 South Sixth Street
Urbana, IL 61820
United States
217-333-2815 (Phone)

Noel Brodsky

Eastern Illinois University - Department of Economics ( email )

Charleston, IL 61920-3099
United States

HOME PAGE: http://www.eiu.edu/~econinfo/

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