The Inter-relationship between Financial Empowerment, Governance and Human Development: Evidence from the G-20 Nations

1Alok Arun – 2Bibhuti Bhusan Mishra – 3Sibanjan Mishra

1Research Scholar, Institute of Business & Computer Studies, K-8, Near SUM Hospital, Ghatikia Kalinga Nagar, Bhubaneswar, Pin-751029, Odisha, INDIA

2Associate Professor, Institute of Business & Computer Studies, K-8, Near SUM Hospital, Ghatikia Kalinga Nagar, Bhubaneswar, Pin-751029, Odisha, INDIA

3Associate Professor, School of Commerce, XIM University, Plot No:12(A), Nijigada, Kurki, Harirajpur, Bhubaneswar, India.

Correspondence: [email protected]

Received: September 1, 2023,    Revised: November 4, 2023,     Published: December  1, 2023


The study delves into the intricate relationship between Financial Empowerment, Governance and Human Development, focusing on the G-20 countries as a representative sample of Diverse Economies and Socio-Political contexts. The main objective of this study is to discern how these Three Interconnected Dimensions contribute to Sustainable and Inclusive Human Development. The manuscript explores an extensive study for 2000-2021 in the G-20 Nations. We used the Financial Development Index to represent Financial Empowerment and constructed a Governance Index using principal components analysis (PCA). We also used the Human Development Index to represent the Human Development aspect and took GDP Growth as a control variable. The study uses the Unit Root Test and Panel Co-integration Test to check the Stationarity of these Variables. The FMOLS and DOLS are used to study the Regression results among the variables to determine the Effects of the variables upon each other. The manuscript also uses the Granger Causality to check the Directional Relationship among the variables to state that these variables have relational value within themselves. The FMPLS and DOLS results stated a positive relationship between the variables, showing a solid governance factor in the G-20 countries and proper advancement in the society by investing in the human development aspect by having proper access to the financial investments. The causality showed a unidirectional causality between financial empowerment and governance and a bi-directional causality between financial empowerment and economic progress.

Keywords: Financial Empowerment, Governance, Human Development, FMOLS, DOLS, Causality

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Alok Arun, Bibhuti Bhusan Mishra, Sibanjan Mishra. (2023). The Inter-relationship between Financial Empowerment, Governance and Human Development: Evidence from the G-20 Nations. Eurasian Journal of Management & Social Sciences, 4(2). doi:10.23918/ejmss.V4i2p202

© Alok Arun, Bibhuti Bhusan Mishra, Sibanjan Mishra, Published by EJMSS. This article is published under the Attribution-NonCommercial 2.0 Generic (CC BY-NC 2.0) license. Anyone may copy and redistribute the material in any medium or format, subject to full attribution to the original publication and authors. The full terms of this license may be seen at


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