Open AccessDETERMINANTS OF FINANCIAL DEVELOPMENT: IMPACT OF HUMAN CAPITAL IN EMERGING MARKETS COUNTRIES
Author(s) -
Syafira Illaina Maghfiroh,
Rudi Purwono
Publication year - 2021
Publication title -
trikonomika
Language(s) - English
Resource type - Journals
eISSN - 2355-7737
pISSN - 1411-514X
DOI - 10.23969/trikonomika.v20i2.4047
Subject(s) - openness to experience , human capital , generalized method of moments , emerging markets , financial market , government expenditure , index (typography) , panel data , capital market , estimation , quality (philosophy) , economics , business , government (linguistics) , financial capital , financial system , indirect finance , panel analysis , finance , economic growth , macroeconomics , econometrics , psychology , social psychology , philosophy , linguistics , management , epistemology , public finance , world wide web , computer science
This study aims to examine determinants of financial development and see role of quality of human capital in financial development in 19 Emerging Market countries during 2008-2017. Financial development in this study is proxied using the financial development index to accommodate multi-dimensional of financial development. Estimation is using the dynamic panel method Generalize Method of Moment (GMM). The results show that the quality of human capital has contributed to increasing financial development in emerging market countries in 2008-2017. Meanwhile, trade openness and government expenditure do not have a statistically significant effect and domestic savings have a significant positive effect on financial development.