Findings from COMSATS Institute of Information Technology Provides New Data about Quality Control Science (Impact of financial development on SAARC'S human development)
By a News Reporter-Staff News Editor at Science Letter -- Research findings on Science are discussed in a new report. According to news originating from Abbottabad, Pakistan, by NewsRx correspondents, research stated, "The objective of the study is to investigate the link between economic growth and financial development (i.e., broad money supply, credit to private sector (CPS) and bank deposit liabilities) in human development for a panel of selected South Asian Association for Regional Cooperation (SAARC) countries; namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka during 1988-2008; over the period of 1988-2008. The panel cointegration technique is employed for analysis of short and long-run relationship between the variables."
Our news journalists obtained a quote from the research from the COMSATS Institute of Information Technology, "The results of panel cointegration found that there is a long-run relationship between financial development indicators and economic growth in human development in SAARC region. The estimated results indicate that in the short run, bank deposit liabilities exerts the maximum impact (i.e., 0.425 %) on human development in SAARC region, subsequently, broad money supply (i.e., 0.301 %) and CPS (i.e., 0.128 %) respectively, while there is a negative relationship between real GDP growth and human capital (i.e., 0.189 %). In the long-run, DOLS estimator constitutes broad money supply which increases by 0.912 %, followed by credit to private sector (i.e., 0.121 %) on human development. While, in case of FMOLS estimator, these results are disappear, as broad money supply does not have any significant impact on human development in SAARC region. The coefficient of real GDP per capita in both estimators, have a negative impact on human development, however, the intensity of both estimators are different in nature, as real GDP per capita decrease human development in FMOLS (i.e., 0.828 %) and in DOLS estimators (i.e., 0.458 %). The results indicate that due to a low quality of human capital in SAARC region; the direct effect of economic growth becomes negative; however, financial development indicators act as an important driver for increase in human capital in SAARC region."
According to the news editors, the research concluded: "The implications of present research relate to heightening the need for labor market reforms and making the educational system more flexible."
For more information on this research see: Impact of financial development on SAARC'S human development. Quality & Quantity, 2014;48(5):2801-2816. Quality & Quantity can be contacted at: Springer, Van Godewijckstraat 30, 3311 Gz Dordrecht, Netherlands. (Springer - www.springer.com; Quality & Quantity - www.springerlink.com/content/0033-5177/)
The news correspondents report that additional information may be obtained from G. Akhmat, COMSATS Inst Informat Technol, Dept. of Management Sci, Abbottabad, Pakistan. Additional authors for this research include K. Zaman and T. Shukui (see also Science).
Keywords for this news article include: Abbottabad, Pakistan, Asia, Economic Growth, Investment and Finance, Science
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