Financial Inclusion, Foreign Direct Investment and Human Development: An Analysis from Middle-Income Countries

Abstract

Human development is vital for human welfare and for the overall development of a country. Current work highlights the role of important variables affecting human development in middle-income countries.  We have used a panel data set and the OLS technique for the analysis. Human development was used as a dependent variable, and financial inclusion, ICT, economic growth, urban population, and foreign direct investment were taken as independent variables. OLS regression results show that financial inclusion, information communication, and technology seem to be enhancing human development in the economies. Moreover, economic growth, urban population, and foreign direct investment also contributed positively to human development. The study recommends more ICT opportunities in countries to achieve more human development. Much focus should be made on investments and growth to boost human development. Finally, there should be a more stable financial and political system to attract investments.