DETERMINANTS OF FINANCIAL DEVELOPMENT: IMPACT OF HUMAN CAPITAL IN EMERGING MARKETS COUNTRIES

This study aims to examine determinants of financial development and see role of quality of human capital in financial development in 19 Emerging Market countries during 2008-2017. Financial development in this study is proxied using the financial development index to accommodate multi-dimensional of financial development. Estimation is using the dynamic panel method Generalize Method of Moment (GMM). The results show that the quality of human capital has contributed to increasing financial development in emerging market countries in 2008-2017. Meanwhile, trade openness and government expenditure do not have a statistically significant effect and domestic savings have a significant positive effect on financial development.

Nafta and Mexico’s Economic Growth from a Gender Perspective

This paper investigates the dynamics of Mexico’s economy after the signing of the NAFTA treaty. It is reported that Mexico, the United States and Canada have experienced low rates of economic growth as a result of the deindustrialization processes they have undergone, which has been a consequence of the tariff reductions. Tariff reduction has also affected employment, especially female industrial employment, with adverse consequences on domestic savings, trade balance and economic growth. Additional analysis is related to cointegration tests of the employment ratios, as well as to the existence of principal components among the three countries’ employment to population ratios. The paper investigates the effects of declining employment to population ratios in the three countries, reporting that in Mexico female employment has increased to compensate the declining tendencies of labor productivity and male employment ratio. The paper ends with a proposal regarding the launching of the North American Social and Dignity Pact.

Analysis of the Determinants of Domestic Savings in the WAEMU

This article analyses the determinants of domestic savings in the West African Economic and Monetary Union (WAEMU), except for Guinea-Bissau. Members of the WAEMU are Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. WAEMU member countries are working toward greater regional integration with unified external tariffs. The economic dynamism sought by each country could be beneficial to the mobilization of savings. Research into the determinants of savings is therefore of crucial importance for countries with a financing gap. The study covers the period from 1982 to 2017. The data used for this study come mainly from the World Bank (WDI). Using Dynamic Least Squares (DOLS), the study finds that domestic saving behavior is positively influenced by gross domestic product per capita, investment, life expectancy at birth, and the lending rate. On the other hand, primary school enrolment, trade openness, and inflation negatively affect domestic savings.