Human Development, Institutional Quality, and Financial Development: Evidence from Middle-Income Countries
References
- Acemoglu, D., Johnson, S., Robinson, J.A. (2002). Reversal of fortunes: geography and institutions in the making of the modern world income distribution. Quarterly Journal of Economics, 117(4), 1231–1294. https://doi.org/10.1162/003355302320935025
- Alawi, S.M.; Abbassi, W.; Saqib, R. & Sharif, M. (2022). Impact of Financial Innovation and Institutional Quality on Financial Development in Emerging Markets. Journal of Risk and Financial Management, 15(3): 1 - 11. https://doi.org/10.3390/jrfm15030115
- Al-Jomard, A.A., Adeeb Ibrahim, I., & Saber Muhamad, B. (2025). The Impact of Resources on Economic Growth through Macroeconomic Variables. Economics - innovative and economics research journal, 13(2), 161–177. https://doi.org/10.2478/eoik-2025-0035
- Allub, L., Gomes, P., & Kuehn, Z. (2024). Human Capital and Financial Development: Firm-Level Interactions and Macroeconomic Implications, The Economic Journal, 134(659): 934–958. https://doi.org/10.1093/ej/uead098
- Almarzoqi, R. M., Naceur, S. N. & Kotak, A. (2015). What Matters for Financial Development and Stability? IMF Working Paper, WP/15/173.
- Aluko, O. A., & Ibrahim, M. (2020). Institutions and the financial development–economic growth nexus in sub‐Saharan Africa. Economic Notes, 49(3), e12163. https://doi.org/10.1111/ecno.12163
- Atsu, F., & Adams, S. (2023). Financial Development and Innovation: Do Institutions and Human Capital Matter? Heliyon, 9(8), e19015. https://doi.org/10.1016/j.heliyon.2023.e19015
- Azizi, S. (2020). Impacts of remittances on financial development. Journal of Economic Studies, 47(3), 467-477. https://doi.org/10.1108/JES-01-2019-0045
- Beck, T., Demirgüç-Kunt, A., & Levine, R. (2003). Law, endowments, and finance. Journal of Financial Economics, 70(2), 137–181. https://doi.org/10.1016/s0304-405x(03)00144-2
- Chen, H., Dai, Y. & Guo, D. (2023). Financial literacy as a determinant of market participation: New evidence from China using IV-GMM. International Review of Economics & Finance, 84, 611-623. https://doi.org/10.1016/j.iref.2022.11.034
- Danlami, M. R., Loganathan, N. Streimikiene, D., Mardani, A., & Golam Hassan, A.A. (2018). The effects of financial development and trade openness on Nigeria‘s dynamic growth. Economics and Sociology, 11(4), 128-141. https://doi.org/10.14254/2071-789X.2018/11-4/8
- Dejene M. B. (2019). Political institutions, human capital and innovation: evidence from sub-Saharan Africa, Democratization, 26(4), 666-708. https://doi.org/10.1080/13510347.2019.1574296
- Deuflhard, F., Georgarakos, D. & Inderst, R. (2019). Financial Literacy and Savings Account Returns. Journal of the European Economic Association, 17(1), 131–164. https://doi.org/10.1093/jeea/jvy003
- Edeme, R.K. & God, E.E.T. (2022). Interactive Effect of Population Growth and Institutional Quality on Environmental Sustainability in West Africa Region. Environmental Sustainability, Growth Trajectory and Gender: Contemporary Issues of Developing Economies, Emerald Publishing Limited, 37-49. https://doi.org/10.1108/978-1-80262-153-220221004
- Eryiğit, S. B., Eryiğit, K. Y., & Dülgeroğlu, E. (2015). Local Financial Development and Capital Accumulations: Evidence from Turkey. Panoeconomicus, 62(3), 339–360. https://doi.org/10.2298/PAN1503339E
- Farayibi, A. O., & Folarin, O. (2021). Does government education expenditure affect educational outcomes? New evidence from Sub-Saharan African countries. African Development Review, 33(3), 546–559. https://doi.org/10.1111/1467-8268.12588
- Feng, Y., & Yu, X. (2021). The impact of institutions on financial development: Evidence from East Asian countries. Australian Economic Papers, 60(1), 122-137. https://doi.org/10.1111/1467-8454.12196
- Ferede M. A. (2022). The Effect of Political Institution and Human Capital on Economic Growth of Sub-Saharan African Countries. Journal of World Economic Research, 11(1), 11-18. https://doi.org/10.11648/j.jwer.20221101.12
- Gutsche, G., Nakai, M. & Arimura, T. H. (2021). Revisiting the determinants of individual sustainable investment: The case of Japan. Journal of Behavioral and Experimental Finance, 30, 100497. https://doi.org/10.1016/j.jbef.2021.100497
- Hernández-Medina, P., Gurría, J., Cabrera-Becerra, J., & Morales-La Paz, L. (2024). Social capital and economic performance for South America: A panel data analysis. Economics and Sociology, 17(4), 217-233. http://dx.doi.org/10.14254/2071-789X.2024/17-4/12
- Hussain, M., Ye, Z., Bashir, A., Chaudhry, N. I., Zhao, Y. (2021). A nexus of natural resource rents, institutional quality, human capital, and financial development in resource-rich high-income economies. Resources Policy, 74, 102259. https://doi.org/10.1016/j.resourpol.2021.102259
- Ibrahim, M., & Sare, Y. A. (2018). Determinants of financial development in Africa: How robust is the interactive effect of trade openness and human capital? Economic Analysis and Policy, 60, 18-26. https://doi.org/10.1016/j.eap.2018.09.002
- Ivanyna, M., & Salerno, A. (2021). Governance for inclusive growth. IMF Working Paper, WP/2021/098. Jude, C.; Levieuge, G. (2017). Growth effect of foreign direct investment in developing economies: The role of institutional quality. The World Economy, 40(4), 715–742. https://doi.org/10.1111/twec.12402
- Kaidi, N.; Mensi, S.; Ben Amor, M. (2019). Financial Development, Institutional Quality and Poverty Reduction: Worldwide Evidence. Social Indicators Research, 141, 131–156. https://doi.org/10.1007/s11205-018-1836-0
- Kakhkharov, J. & Rohde, N. (2020). Remittances and financial development in transition economies. Empirical Economics, 59, 731–763. https://doi.org/10.1007/s00181-019-01642-3
- Kassie, N. M. (2021). The effects of financial development on economic growth in Africa: Does the quality of institutions matter? Journal of Business Economics and Finance, 10(4), 166–177. https://doi.org/10.17261/Pressacademia.2021.1462
- Khan, M. S. R., Rabbani, N., & Kadoya, Y. (2020). Is financial literacy associated with investment in financial markets in the United States? Sustainability, 12(18), 7370. https://doi.org/10.3390/su12187370
- Khan, M.A.; Kong, D.; Xiang, J.; Zhang, J. (2020). Impact of Institutional Quality on Financial Development: Cross Country Evidence based on Emerging and Growth Leading Economies. Emerging Markets Finance and Trade, 56(15), 3829 - 3845. https://doi.org/10.1080/1540496X.2019.1588725
- Khan, Z., Hussain, M., Shahbaz, M., Yang, S., & Jiao, Z. (2020). Natural resource abundance, technological innovation, and human capital nexus with financial development: A case study of China. Resources Policy, 65, 101585. https://doi.org/10.1016/j.resourpol.2020.101585
- Kombo, P. G. B. N. & Koumou, G. B. (2021). The Role of the Quality of Institutions in the Financial Development of CEMAC Countries. Modern Economy, 12(2). https://doi.org/10.4236/me.2021.122023
- Kovačević, I., & Manojlović, M. (2024). Base Rate Neglect Bias: Can it be Observed in HRM Decisions and Can it be Decreased by Visually Presenting the Base Rates in HRM Decisions? International Journal of Cognitive Research in Science, Engineering and Education (IJCRSEE), 12(1), 119–132. https://doi.org/10.23947/2334-8496-2024-12-1-119-132
- Kutan, A. M., Samargandi, N., & Sohag, K. (2017). Does institutional quality matter for financial development and growth? Further evidence from MENA countries. Australian Economic Papers, 56(3), 228–248. https://doi.org/10.1111/1467-8454.12097
- La Porta, R., Lopez‐de‐Silanes, F., Shleifer, A., & Vishny, R. W. (1998). Law and Finance. Journal of Political Economy, 106(6), 1113–1155. https://doi.org/10.1086/250042
- Lucas, R. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 22(1), 3-42. https://doi.org/10.1016/0304-3932(88)90168-7
- Lusardi, A., Hasler, A., & Yakoboski, P. J. (2021). Building up financial literacy and financial resilience. Mind & Society, 20(2), 181–187. https://doi.org/10.1007/s11299-020-00246-0
- Masron, T.A.; Nor, E. (2013). FDI in ASEAN–8: Does institutional quality matter? Applied Economics Letters 20(2), 186–189. https://doi.org/10.1080/13504851.2012.687090
- Mastilo, Z., Barić, F. & Puška, A. (2025). Challenges and Opportunities of Implementing Digital Payment Systems in Southeast European Countries. Journal of Central Banking Theory and Practice, 14(2), 5-28. https://doi.org/10.2478/jcbtp-2025-0011
- Milutinović, O., Anđelić, S., Garabinović, D., & Bajac, M. (2024). Management and Organization of Human Resources in Science and Technology of the Republic of Serbia. International Journal of Cognitive Research in Science, Engineering and Education (IJCRSEE), 12(1), 89–101. https://doi.org/10.23947/2334-8496-2024-12-1-89-101
- Mtar, K. & Belazreg, W. (2021). Causal Nexus Between Innovation, Financial Development, and Economic Growth: The Case of OECD Countries. Journal of the Knowledge Economy, 12(1), 310-341. https://doi.org/10.1007/s13132-020-00628-2
- Muellerleile, C. (2017). Calming Speculative Traffic: An Infrastructural Theory of Financial Markets. Economic Geography, 94(3), 279–298. https://doi.org/10.1080/00130095.2017.1307100
- Odhiambo, N.M. & Musakwa, M. T. (2024). Remittance inflows and financial development in Sub-Saharan African countries: Does governance matter? Heliyon, 10(5). https://doi.org/10.1016/j.heliyon.2024.e26953
- Ofori, P. E., Kuuwill, A., & Quaye, B. (2024). Effect of human capital development and institutional quality on inclusive growth in African countries. Cogent Economics & Finance, 12(1). https://doi.org/10.1080/23322039.2024.2357155
- Onifade, S. T., Gyamfi, B. A., Haouas, I. & Asongu, S. A. (2024). Extending the frontiers of financial development for sustainability of the MENA states: The roles of resource abundance and institutional quality. Sustainable Development, 32, 1971–1986. https://doi.org/10.1002/sd.2751
- Pagano, M., & Volpin, P. (2001). The political economy of finance. Oxford Review of Economic Policy, 17(4), 502–519. https://doi.org/10.1093/oxrep/17.4.502
- Popoola, O., Alege, P.O., Gershon, O. & Asaleye, J.A. (2019). Human capital channels and productivity growth: Evidence from Nigeria. Economics and Sociology, 12(4), 59-73. https://doi.org/10.14254/2071-789X.2019/12-4/3
- Romer, P. M. (1990). Human capital and growth: Theory and evidence. Carnegie-Rochester Conference Series on Public Policy, 32, 251-286. https://doi.org/10.1016/0167-2231(90)90028-J
- Rutendo Magwedere, M., & Marozva, G. (2025). Inequality and Informal Economy: The Moderating Role of Financial Technology. Economics - Innovative and economics research journal, 13(1), 197-211. https://doi.org/10.2478/eoik-2025-0004
- Sabir, S. and Qamar, M. (2019). Fiscal policy, institutions and inclusive growth: evidence from the developing Asian countries. International Journal of Social Economics, 46(6), 822-837. https://doi.org/10.1108/IJSE-08-2018-0419
- Samargandi, N., Fidrmuc, J. & Ghosh, S. (2015). Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries. World Development, 68, 66-81. https://doi.org/10.1016/j.worlddev.2014.11.010
- Seven, F., Uslu, M., &Guney Sahan, B. (2023). The Association Between Natural Disasters - Trade: Literature Review. Collection of papers new economy, 1, 164-178. https://doi.org/10.61432/CPNE0101164s
- Shahbaz, M., Naeem, M., Ahad, M., Tahir, I., (2018). Is natural resource abundance a stimulus for financial development in the USA? Resource Policy, 55, 223–232. https://doi.org/10.1016/j.resourpol.2017.12.006
- Spyromitros, E., & Panagiotidis, M. (2022). The impact of corruption on economic growth in developing countries and a comparative analysis of corruption measurement indicators. Cogent Economics & Finance, 10(1). https://doi.org/10.1080/23322039.2022.2129368
- Thomas, A., & Spataro, L. (2018). Financial literacy, human capital and stock market participation in Europe. Journal of Family and Economic Issues, 39(4), 532-550. https://doi.org/10.1007/s10834-018-9576-5
- Topić – Pavković, B. (2024). Challenges to Global Monetary and Financial Stability. Collection of papers new economy, 2(1), 31-45. https://doi.org/10.61432/CPNE0201031t
- Zaidi, S. A. H., Wei, Z., Gedikli, A., Zafar, M. W., Hou, F., & Iftikhar, Y. (2019). The impact of globalization, natural resources abundance, and human capital on financial development: Evidence from thirty-one OECD countries. Resources Policy, 64, 101476. https://doi.org/10.1016/j.resourpol.2019.101476
Language: English
Page range: 283 - 301
Submitted on: Mar 6, 2025
Accepted on: Jul 29, 2025
Published on: Sep 2, 2025
Published by: Oikos Institut d.o.o.
In partnership with: Paradigm Publishing Services
Publication frequency: 3 issues per year
Related subjects:
© 2025 Thi Anh Nhu Nguyen, published by Oikos Institut d.o.o.
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.