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Financial Institution Index, Banking Stability, and Human Development Index Nexus in Emerging Market Countries

Author

Listed:
  • Ariodillah Hidayat
  • Harunnurrasyid
  • Apriansyah Putra
  • Zunaidah
  • Ermadiani
  • Rina Tjandrakirana
  • Anna Yulianita
  • Dirta Pratama Atiyatna
  • Xenaneira Shodrokova

Abstract

Development Index (HDI), a key indicator for assessing social and economic progress in emerging markets. The study used annual panel data from the period 2000 to 2021 obtained from the International Monetary Fund and the World Bank. The analysis method used is Fixed Effect Model panel data regression. The results showed that Financial Depth, Access, Efficiency Institution Index, and banking stability have a positive and significant impact on HDI. The government is advised to expand access to financial services, improve financial inclusion programs, and improve financial regulations to increase transparency. This will help meet basic needs such as education and health and strengthen the financial sector. In addition, it is necessary to improve the supervision and management of financial risks as well as the operational efficiency of financial institutions. These efforts are expected to maintain banking sector stability, support MSMEs, and enhance cooperation between the government, financial institutions, and the private sector for inclusive and sustainable human development.

Suggested Citation

  • Ariodillah Hidayat & Harunnurrasyid & Apriansyah Putra & Zunaidah & Ermadiani & Rina Tjandrakirana & Anna Yulianita & Dirta Pratama Atiyatna & Xenaneira Shodrokova, 2025. "Financial Institution Index, Banking Stability, and Human Development Index Nexus in Emerging Market Countries," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 22-45.
    • Handle: RePEc:bas:econst:y:2025:i:3:p:22-45
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    References listed on IDEAS

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    1. Sakiko Fukuda-Parr & Alicia Ely Yamin & Joshua Greenstein, 2014. "The Power of Numbers: A Critical Review of Millennium Development Goal Targets for Human Development and Human Rights," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 15(2-3), pages 105-117, July.
    2. Syella Nurhaliza & Ariodillah Hidayat & Siti Rohima & Rasyida Pertiwi & Liliana & Sri Andaiyani & Xenaneira Shodrokova & Ichsan Hamidi, 2024. "The Relationship between Financial Inclusion and Financial Stability Banking Industry in G20 Emerging Market Countries: A Panel Data Evidence," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 113-132.
    3. Daniel Covitz & Nellie Liang & Tobias Adrian, 2015. "Financial Stability Monitoring," Annual Review of Financial Economics, Annual Reviews, vol. 7(1), pages 357-395, December.
    4. Kim, Dai-Won & Yu, Jung-Suk & Hassan, M. Kabir, 2018. "Financial inclusion and economic growth in OIC countries," Research in International Business and Finance, Elsevier, vol. 43(C), pages 1-14.
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    More about this item

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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