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

Abstract

Education is one of the Sustainable Development Goals (SDGs) of the United Nations and is also a vital factor for nearly all the other SDGs. Therefore, factors underlying educational attainment are crucial for achieving the SDGs by 2030. In this context, the financial system has become critical in building various schools and covering educational expenditures such as teachers’ salaries, teaching materials, and training. This paper uses static and dynamic regression methods to study the impact of financial sector development, remittances, real GDP per capita, information and communications technologies (ICT) development, and globalization on educational attainment in 18 emerging economies over the 2000–2020 period. The results indicate that financial development, remittances, real GDP per capita, ICT development, and globalization positively impact educational attainment. Real GDP per capita, ICT development, globalization, and financial development have the highest impact of these factors. In contrast, remittances have a limited positive influence on educational attainment compared with other variables.

Quality Education for All: A Fuzzy Set Analysis of Sustainable Development Goal Compliance

“…Therefore, investment in qualifying human resources tends to translate not only into economic development but also at social, cultural, and political levels [1]. A previous study precisely corroborated the impacts of education at a demographic, social, institutional, and economic level, assuming itself as a significant determinant of human capital, innovation, productivity, technological progress, and entrepreneurial activity [2]. Moreover, Zolfaghari [1] stated that education is the only solution to eradicate underdevelopment in today's industrialized world.…”

“…The relationship between education and the development of society is absolute and indubitable [1], constituting one of the main factors in achieving the social and economic objectives of societies and individuals [2]. Education translates into direct and indirect effects on the production of countries [3], presenting itself as an important factor and determinant of economic well-being [4].…”

“…2 more informed, particularly from an economic perspective (e.g., in terms of financial and technological markets), with potential repercussions on economic development [2]. On the other hand, professionals with higher levels of qualification tend to increase national income directly, as their skills contribute to increased productivity [3,4].…”

“…It should be noted that, in this alignment, education, in multiple ways, constitutes a critical factor not only for economic development but also, and relatedly, for sustainable development [2]. Different international organizations have come to recognize education as a key factor in human development and social well-being, contributing, among others, to improving health, gender equality, social inclusion, democracy, peace, and environmental protection and reducing poverty [5].…”

“…It is also important to highlight that knowledge and learning constitute key success factors for implementing the SDGs [9]. In this sense, quality education emerges as an SDG with the potential to impact others in the short and long term [1,2,17]. SDG 4 is the cornerstone for achieving all other SDGs, meaning that quality education is one of the most powerful and proven means for sustainable development [5,10,11,[17][18][19].…”