Investigating the path to international trade expansion: human development conditions for financial development influence in Sub-Saharan Africa

Purpose This study investigates the contingent role of human development in moderating the relationship between financial development and international trade across 38 Sub-Saharan African countries from 2008 to 2023. Design/methodology/approach Drawing on Heckscher–Ohlin theory, the study employs a dynamic panel threshold regression model to empirically determine the minimum levels of human development indicators: life expectancy, education attainment and gross national income (GNI) per capita necessary for financial development to exert an influence on trade performance. Findings The study reveals statistically significant threshold effects; thus, when life expectancy, education and GNI per capita fall below identified thresholds of 0.658 (62.7 years), 0.911 (13.6 years) and 0.846 ($63,450), respectively, financial development negatively affects trade. Conversely, once these thresholds are exceeded, financial deepening begins to foster international trade growth. These insights reveal a critical asymmetry in the finance–trade nexus, moderated by human development quality. Research limitations/implications The study calls for a coordinated policy approach that aligns human development investment with financial sector reforms, thereby enabling the region to harness its full trade potential within the global economy. Originality/value This research offers original empirical evidence on the nonlinear conditionality of trade outcomes in SSA and contributes to the literature by identifying quantifiable policy thresholds of human development that must be surpassed to unlock the benefits of financial development.