Abstract
Through a regression model, the study highlighted the role of the banking finance and monetary policy in enhancing human development index (HDI) in Sudan during the period (1999-2018). The descriptive analytical approach was used to achieve the objectives of the study. Secondary data were collected from; annual reports of the Central Bank of Sudan, World Bank and UNDP database. Inflation rates were used to indicates the efficiency of monetary policy. To ensure stationary of the variables used to estimate the model, Augmented Dickey-Fuller (ADF) and unit root tests were calculated. Results of ADF test show that, the set of variables are stationary at 1st difference. Ordinary least squares method was used to determine and conclude the direction of relations between the HDI and variables. The results found that there is a positive relationship between HDI and changes in provision of banking finance and inflation during the period of the study. Moreover, it's found that, monetary policy in term if inflation indirectly contributed to enhances HDI through money supply increase. The study recommends the commercial banks in Sudan to expand granting finance to the various economics activities especially the production sector. Furthermore, monetary authority should adopt contractionary monetary policy to reduce inflation and improve the standard of living.Keywords: Banking Finance, Monetary policy, Inflation, Human Development IndexJEL Classifications: E3, G21, I31, O5DOI: https://doi.org/10.32479/ijefi.9902
Highlights
Inequalities in human development hurt societies and weaken social cohesion and people’s trust in government, institutions and each other
“Eq (2)” tell as that human development index is a function of banking finance and inflation as a control factor
BF: Banking finance represents the finance provided by the banking institutions in Sudan to all economic sectors
Summary
Inequalities in human development hurt societies and weaken social cohesion and people’s trust in government, institutions and each other. The reduction of human development index (HDI) indicating a decline in the performance of economies, wastefully preventing people from reaching their full potential at work and in life. Due to the importance of human development, this paper attempts to highlight the potential role of banking finance in enhancing HDI in Sudan during (1999-2018). Statement of the Problem The status of Sudan’s HDI has made a remarkable progress in a number of indictors those relating to peace, health and education. Banking sector in Sudan provides financing to all economic sectors (production s, education, health, services, energy and mining, trade, etc.) they are indirectly working to improve the components of HDI. The research problem is inspired by highlighting the role of banking finance and monetary policy in strengthening HDI in Sudan during the period 1999-2018
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Economics and Financial Issues
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
