Financial Market Expansion And Human Development In SubSaharan African Countries

Abstract

The current study investigated the contributing impact of financial market expansion to human development in Sub-Saharan African (SSA) nations using a panel data between 1990-2023. The study employed ex-post facto research design. Data was obtained from World Development Indicators (WDI). The Panel Autoregressive Distributed Lag Model (PARDL) formed the main estimation technique for the study and hypotheses testing at 0.05 level of significance. The study found that financial market depth has a positive (∂=0.120) and significant (0.000) effect on HDI in SSA countries. The study also found that financial market access has positive (∂=0.520) and significant (0.000) effect on HDI in SSA countries. Furthermore, the study found that financial market stability has a negative (∂=-0.078) and significant (0.0218) effect on HDI in SSA countries. The current study therefore proposed that governments should prioritize policies that deepen financial markets. Efforts should be made to expand financial market access to underserved populations and regions. Policymakers and regulatory authorities should strengthen mechanisms for monitoring and mitigating risks that may destabilize financial markets.