2022_The Effects of Financial Inclusion, Institutional Quality and Remittance Inflows on Human Development on The Organisation of Islamic Cooperation (OIC) Countries

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spelling 15770 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15770 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Copyright©PWB2025 2022-10-27 15770_6763f0d56da1cd4.pdf 272 Kabiru Kamalu 2022_The Effects of Financial Inclusion, Institutional Quality and Remittance Inflows on Human Development on The Organisation of Islamic Cooperation (OIC) Countries The Organisation for Islamic Cooperation (OIC) is made up of heterogenous countries at different levels of human development. Despite the performance of OIC members as a group in achieving higher ranking in Human Development Index over the last two decades, there is still much needed to be achieved especially among low and lowermiddle income OIC members. These countries are characterised by poor human capital development, poor healthcare system, poverty and income inequality, thus, they have low human development. The objectives of this study are, first, to examine the effect of financial inclusion, institutional quality and remittance inflows on human development in OIC member countries. Second, to determine the role of interactions of financial inclusion and institutional quality on human development and also interaction of financial inclusion and remittance inflows on human development. Third, to evaluate the causal link between human development, financial inclusion, institutional quality and remittance inflows among OIC member countries and fourth, to examine the effect of financial inclusion, institutional quality and remittance inflows across different levels of human development in OIC member countries. This study employed System Generalised Method of the Moment, heterogenous non-Granger panel causality test and panel quantile regression method, with data from 2005 to 2018, forming 50 out of 57 OIC members with available data. The results revealed that financial inclusion, institutional quality and remittance inflows promote human development among OIC members. Interestingly, the results of the interactions show that, quality institutions in OIC enhanced the positive effect of financial inclusion on human development and inflows of international remittance to OIC members compliment the role of financial inclusion in promoting higher human development. Moreover, the results of the causality indicate the existence of unidirectional causal link running from financial inclusion to human development; bidirectional causality between remittance inflows and human development, a neutral causal link was observed between institutional quality and human development in OIC members. Lastly, the results of panel quantile regression model revealed that financial inclusion promote human development across all levels of human development, but the effects is stronger for members with high human development. Also, the results show that institutional quality promotes human development in OIC members with “high” and “very high” human development, while negatively affects human development in OIC members with low and “medium” human development. In addition, the results show that remittance inflows promotes human development across all levels of human development, but the effect is higher in OIC members with “low” human development. The study concluded that financial inclusion, institutional quality and remittance inflows are important determinants of human development in OIC. Thus, policymakers at OIC member states should devise policies that will increase the level of financial inclusion, enhances institutional quality and promote remittance inflows, hence, higher human development will be realised. Importantly, policies that will engineer investments in banking infrastructures, reduction in the cost of sending remittance through formal channels and promote the practice of governance should be pursued holistically by all stakeholders. Financial inclusion Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Economic development—Islamic countries Financial Inclusion Institutional Quality Remittance Inflows Human Development The Organisation of Islamic Cooperation (OIC) Countries Remittances—Economic aspects Human development—Islamic countries Institutional quality—Economic aspects Thesis
spellingShingle 2022_The Effects of Financial Inclusion, Institutional Quality and Remittance Inflows on Human Development on The Organisation of Islamic Cooperation (OIC) Countries
state Terengganu
subject Financial inclusion
Dissertations, Academic
Economic development—Islamic countries
Remittances—Economic aspects
Human development—Islamic countries
Institutional quality—Economic aspects
summary The Organisation for Islamic Cooperation (OIC) is made up of heterogenous countries at different levels of human development. Despite the performance of OIC members as a group in achieving higher ranking in Human Development Index over the last two decades, there is still much needed to be achieved especially among low and lowermiddle income OIC members. These countries are characterised by poor human capital development, poor healthcare system, poverty and income inequality, thus, they have low human development. The objectives of this study are, first, to examine the effect of financial inclusion, institutional quality and remittance inflows on human development in OIC member countries. Second, to determine the role of interactions of financial inclusion and institutional quality on human development and also interaction of financial inclusion and remittance inflows on human development. Third, to evaluate the causal link between human development, financial inclusion, institutional quality and remittance inflows among OIC member countries and fourth, to examine the effect of financial inclusion, institutional quality and remittance inflows across different levels of human development in OIC member countries. This study employed System Generalised Method of the Moment, heterogenous non-Granger panel causality test and panel quantile regression method, with data from 2005 to 2018, forming 50 out of 57 OIC members with available data. The results revealed that financial inclusion, institutional quality and remittance inflows promote human development among OIC members. Interestingly, the results of the interactions show that, quality institutions in OIC enhanced the positive effect of financial inclusion on human development and inflows of international remittance to OIC members compliment the role of financial inclusion in promoting higher human development. Moreover, the results of the causality indicate the existence of unidirectional causal link running from financial inclusion to human development; bidirectional causality between remittance inflows and human development, a neutral causal link was observed between institutional quality and human development in OIC members. Lastly, the results of panel quantile regression model revealed that financial inclusion promote human development across all levels of human development, but the effects is stronger for members with high human development. Also, the results show that institutional quality promotes human development in OIC members with “high” and “very high” human development, while negatively affects human development in OIC members with low and “medium” human development. In addition, the results show that remittance inflows promotes human development across all levels of human development, but the effect is higher in OIC members with “low” human development. The study concluded that financial inclusion, institutional quality and remittance inflows are important determinants of human development in OIC. Thus, policymakers at OIC member states should devise policies that will increase the level of financial inclusion, enhances institutional quality and promote remittance inflows, hence, higher human development will be realised. Importantly, policies that will engineer investments in banking infrastructures, reduction in the cost of sending remittance through formal channels and promote the practice of governance should be pursued holistically by all stakeholders.
title 2022_The Effects of Financial Inclusion, Institutional Quality and Remittance Inflows on Human Development on The Organisation of Islamic Cooperation (OIC) Countries
title_full 2022_The Effects of Financial Inclusion, Institutional Quality and Remittance Inflows on Human Development on The Organisation of Islamic Cooperation (OIC) Countries
title_fullStr 2022_The Effects of Financial Inclusion, Institutional Quality and Remittance Inflows on Human Development on The Organisation of Islamic Cooperation (OIC) Countries
title_full_unstemmed 2022_The Effects of Financial Inclusion, Institutional Quality and Remittance Inflows on Human Development on The Organisation of Islamic Cooperation (OIC) Countries
title_short 2022_The Effects of Financial Inclusion, Institutional Quality and Remittance Inflows on Human Development on The Organisation of Islamic Cooperation (OIC) Countries
title_sort 2022_the effects of financial inclusion, institutional quality and remittance inflows on human development on the organisation of islamic cooperation (oic) countries