Title: Financial development and regional human development: does capital expenditure matter?

Authors: Grahita Chandrarin; Anwar Sanusi; Elfiatur Roikhah; Dani Yuniawan; Diyah Sukanti Cahyaningsih

Addresses: Post Graduate School of University of Merdeka Malang, University of Merdeka Malang, Jalan Terusan Raya Dieng No. 62-64 Malang, 65146, Indonesia ' Post Graduate School of University of Merdeka Malang, University of Merdeka Malang, Jalan Terusan Raya Dieng No. 62-64 Malang, 65146, Indonesia ' Post Graduate School of University of Merdeka Malang, University of Merdeka Malang, Jalan Terusan Raya Dieng No. 62-64 Malang, 65146, Indonesia ' Post Graduate School of University of Merdeka Malang, University of Merdeka Malang, Jalan Terusan Raya Dieng No. 62-64 Malang, 65146, Indonesia ' Post Graduate School of University of Merdeka Malang, University of Merdeka Malang, Jalan Terusan Raya Dieng No. 62-64 Malang, 65146, Indonesia

Abstract: This paper examines the impact of financing decision (FD) and financial inclusion (FI) on the human development index (HDI). Capital expenditure (CE) as a contingency factor that can improve the impact of financing decisions on HDI. Small and medium-size enterprises financing (SMEs F) and income equality (IE), both are used as control variables. Panel data is consist of all province in Indonesia for seven years since issued government's regulation regarding sustainable development. Data were analysed by moderated regression analysis. The result of this study stated that the impact of FD and FI on HDI is statistically significant. Capital expenditures can be strengthening the impact of financing decisions on HDI.

Keywords: HDI; human development index; financing decision; capital expenditures; financial inclusion; SME financing; income equality.

DOI: 10.1504/IJTGM.2022.124096

International Journal of Trade and Global Markets, 2022 Vol.15 No.3, pp.294 - 312

Accepted: 25 Mar 2020
Published online: 12 Jul 2022 *

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