Financial development and educational quality in Sub-Saharan Africa

Impact of Financial Development and Remittances on Educational Attainment within the Context of Sustainable Development: A Panel Evidence from Emerging Markets

“…However, other financial development indicators such as the rate of private credit to GDP, liquid liabilities to GDP, M2 money supply indicator, and stock market capitalization used in the empirical literature indicate only the depth of the financial system [37,[72][73][74]. Therefore, recent studies have begun to employ the IMF's financial development index or multidimensional indices formed by themselves, which simultaneously figure the access, depth, and efficiency of the financial system [14,[75][76][77].…”

“…On the one hand, earlier studies such as Hakeem and Oluitan [36], Nik et al [37], and Arora [41] discovered a negative impact of financial development on various education indicators. On the other hand, the recent empirical studies, including Sehrawat and Giri [13], Musah and Aawaar [14], Abubakar et al [38], Kilic and Ozcan [39], Shafiei et al [40], and Gohari et al [42], uncovered a positive influence of financial development on various education indicators.…”

“…Musah and Aawaar [14] investigated the effects of financial sector development indicators on educational quality represented by pupil-teacher ratio in 42 Sub-Saharan African states between 1990 and 2019 through the two-step system Generalized Method of Moment (GMM) model. They highlighted that indicators of financial sector development positively affected the quality at all education levels.…”

“…In this context, financial development can influence educational attainment via different positive and negative channels. First, a financial system with higher access, depth, and efficiency is expected to improve education through financing public, private, and individual educational investments and income and economic growth [12][13][14]. Yet, some researchers suggest a negative relationship between financial sector development and educational attainment resulting from financial market imperfections, such as asymmetric information problems and transaction costs [15][16][17].…”

Barriers and Challenges Affecting Quality Education (Sustainable Development Goal #4) in Sub-Saharan Africa by 2030

“…In 2013, Africa's Gross Domestic Expenditure on Research and Development (GERD) was estimated to be USD 19.9 billion. However, several scholars have proposed that in SSA, there needs to be an almost four-fold increase in this indicator for it to reach the world average of GERD spending [30,31]. This increase is seen as a strategy to achieve educational development goals by 2030 [32].…”