Does Financial Inclusion and Human Development progress sustainably? Evidence from Emerging countries

We employed financial inclusion (FI) as an index derived using principal component analysis (PCA) from 4 financial inclusion indicators: banking institutions, commercial bank branches, ATMs, and deposit accounts with commercial banks. Similarly, this study used the education index and health index formulated by PCA, and these two indices together proxied for human development. The education index was derived from primary school enrolment, secondary school enrolment, and internet users per 100 people. The health index was represented by current health expenditure per capita, domestic government health expenditure per capita, and domestic private health expenditure per capita. Control variables of the study include GDP per capita (Constant 2015 US$) was used to represent economic growth, CO2 emissions per capita and natural resources as a percentage of the GDP, and Remittances received as a percentage of GDP. Table III presents the list of variables and its sources.