Vol. 20 No. 1 (2017), Articles
Vol. 20 No. 1 (2017)

Human Development, Banking Development and the Quality of Local Government: The Case of Indonesia

Articles
DOI: 10.14414/jebav.v20i1.843
Published 10-08-2017
Dewanti Cahyaningsih
Universitas Sebelas Maret
Irwan Trinugroho
Universitas Sebelas Maret
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Keywords

Human development
banking development
financial literacy
quality of local government
Indonesia

How to Cite

Cahyaningsih, D., & Trinugroho, I. (2017). Human Development, Banking Development and the Quality of Local Government: The Case of Indonesia. Journal of Economics, Business, and Accountancy Ventura, 20(1), 13-19. https://doi.org/10.14414/jebav.v20i1.843
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Abstract

We extend the study of Trinugroho et al. (2015) by focusing on the effect of human development on banking development and the moderating effect of the quality of local government on the link between human development and banking development. We use unique data set by disentangling the type of banks (commercial bank, rural bank, and the total of both) to measure financial development. This research uses panel data at the provincial level for the period of 2010-2014. Generally, it could be concluded that human development has positive effect on banking development. To some extent, the quality of local government is found to strengthen the impact of human development on banking development.  

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