Financial Inclusion and Development as Catalysts for Human Development: Insights from Selected Asian Economies

The current study reveals that financial inclusion and financial development are important determinants of human development in a few selected Asian nations. The authors have contributed panel data for 8 economies for the years starting from 2005 to 2018. The human development index is considered a dependent variable. It also checks for the impact of the number of commercial bank branches and the number of ATMs separately, taking the latter as a proxy for financial inclusion. Further, in this research, an attempt is also made to analyse the impact of financial inclusion on the human development index. It is found, by using fixed and random effect method, that the financial inclusion with all the other explanatory factors has significantly boosted up the human development of the Asian economies. Our results suggested the maximum monetary approach and services to promote human development in an economy. Much focus shall be made on better provision for education to brighten up the standard of living. It also suggests from the study a stable environment for more production, growth, and development.