Mohammad Ali Jalali - Master Student, Department of Management, Tabriz Branch, Islamic Azad University,Tabriz, Iran.
Seyyed Ali Paytakhti Oskooe - Assistant Professor, Department of Economics, Tabriz Branch, Islamic Azad University,Tabriz, Iran (Corresponding Author).

In this study, the impacts of human development indicators, inflation, government consumption expenditure and institutional factors are examined on the financial development index (the ratio of the value of shares traded on the stock market to GDP) With the use of Panel co-integration techniques, and the approach of generalized least squares (GLS) to the seemingly unrelated regressions, in 10 selected developing countries, during 2002 to 2012. Based on regression results, the index of human development and institutional factors have a positive impact on financial development, but the effect of inflation and consumer spending is negative.

human development, financial development, panel cointegration techniques