Financial Inclusion and Human Capital in Developing Asia: the Australian Connection

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Title Financial Inclusion and Human Capital in Developing Asia: the Australian Connection
Author Arora, Rashmi Umesh
Journal Name Third World Quarterly
Year Published 2012
Place of publication United Kingdom
Publisher Routledge
Abstract The Australian government as part of its aid programme allocates large funds to improve financial inclusion in developing countries. However, this does not take into account low educational levels in these countries. The existing literature on financial inclusion also treats the issue as mainly supply-centric and does not take cognisance of the fact that poor human development and high illiteracy levels in developing economies may prevent a large section of the population from benefitting from financial inclusion efforts, because of low awareness and comprehension of the financial services available. This study uses a detailed three-stage methodological approach to examine the relationship between financial development and human capital in 21 countries of developing Asia. The results show that a significant negative relationship exists between financial development proxied by M2/gdp and pupil:teacher ratios and a strong positive relationship exists between physical access to banks and expected years of schooling. Further, our financial development and educational development indices also show no clear pattern in the selected countries' financial and educational development.
Peer Reviewed Yes
Published Yes
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Copyright Statement Copyright 2011 Taylor & Francis. This is an electronic version of an article published in Third World Quarterly, Volume 33, Issue 1, 2012, pages 177-197. Third World Quarterly is available online at: with the open URL of your article.
Volume 33
Issue Number 1
Page from 179
Page to 199
ISSN 0143-6597
Date Accessioned 2012-01-05
Language en_US
Faculty Griffith Business School
Subject Economic Development and Growth
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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