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The necessity of social infrastructure for enhancing educational attainment: evidence from high remittance recipient LMICs

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  • Hayot Berk Saydaliev

    (Tashkent State University of Economics)

  • Lee Chin

    (Universiti Putra Malaysia)

Abstract

This study investigated the effect of remittance inflows on educational attainment with the interaction effect of social infrastructure. The system generalized method of moments (Sys-GMM) technique was applied to analyze data from 69 countries from 1995 to 2019 using a 5-year non-overlapping average. The findings revealed that: (1) remittances and income have a negative effect on educational attainment in low- and middle-income countries; (2) social infrastructure, government expenditures on education, and institutional quality have a positive effect on educational attainment; (3) remittances alone cannot generate educational attainment; however, when remittances work in tandem with better social infrastructure, it facilitates educational attainment; (4) remittances and social infrastructure have asymmetric effects on educational attainment; and (5) remittances contribute more to females than males in obtaining an education. Thus, the findings suggest that policymakers should formulate alternative social infrastructure development strategies to render higher returns from remittances.

Suggested Citation

  • Hayot Berk Saydaliev & Lee Chin, 2023. "The necessity of social infrastructure for enhancing educational attainment: evidence from high remittance recipient LMICs," Economic Change and Restructuring, Springer, vol. 56(3), pages 1823-1847, June.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:3:d:10.1007_s10644-023-09491-y
    DOI: 10.1007/s10644-023-09491-y
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    More about this item

    Keywords

    Remittances; Social infrastructure; Educational attainment; Migration; GMM;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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