IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i16p12322-d1216207.html

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

Author

Listed:
  • Funda H. Sezgin

    (Department of Industrial Engineering, Istanbul University-Cerrahpaşa, 34320 Istanbul, Turkey)

  • Gökçe Tekin Turhan

    (Department of Banking and Finance, Nişantaşı University, 34398 İstanbul, Turkey)

  • Gamze Sart

    (Department of Educational Sciences, Hasan Ali Yucel Faculty of Education, İstanbul University-Cerrahpaşa, 34320 İstanbul, Turkey)

  • Marina Danilina

    (Department of Economics, Plekhanov Russian University of Economics (PRUE), 117997 Moscow, Russia
    Department of Economics, Financial University under the Government of the Russian Federation, 125167 Moscow, Russia)

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.

Suggested Citation

  • Funda H. Sezgin & Gökçe Tekin Turhan & Gamze Sart & Marina Danilina, 2023. "Impact of Financial Development and Remittances on Educational Attainment within the Context of Sustainable Development: A Panel Evidence from Emerging Markets," Sustainability, MDPI, vol. 15(16), pages 1-14, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12322-:d:1216207
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/16/12322/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/16/12322/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gamze Sart & Yilmaz Bayar & Adrian-Gabriel Corpădean & Marius Dan Gavriletea, 2022. "Impact of ICT and Globalization on Educational Attainment: Evidence from the New EU Member States," Sustainability, MDPI, vol. 14(5), pages 1-13, March.
    2. Imtiaz Arif & Syed Ali Raza & Anita Friemann & Muhammad Tahir Suleman, 2019. "The Role of Remittances in the Development of Higher Education: Evidence from Top Remittance Receiving Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1233-1243, February.
    3. Rashmi Arora, 2012. "Financial Inclusion and Human Capital in Developing Asia: the Australian connection," Third World Quarterly, Taylor & Francis Journals, vol. 33(1), pages 177-197.
    4. Abubakar Musah & Godfred Aawaar, 2022. "Financial development and educational quality in Sub-Saharan Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2131115-213, December.
    5. Jamal Bouoiyour, Amal Miftah, 2015. "Migration, remittances and educational levels of household members left behind: Evidence from rural Morocco," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 12(1), pages 21-40, July.
    6. Gradstein, Mark & Brückner, Markus, 2013. "Income and schooling," CEPR Discussion Papers 9365, Centre for Economic Policy Research.
    7. Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-298, April.
    8. Cortes, Patricia, 2015. "The Feminization of International Migration and its Effects on the Children Left Behind: Evidence from the Philippines," World Development, Elsevier, vol. 65(C), pages 62-78.
    9. David McKenzie & Hillel Rapoport, 2011. "Can migration reduce educational attainment? Evidence from Mexico," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1331-1358, October.
    10. Liu, Maggie Y., 2023. "How does globalization affect educational attainment? Evidence from China," International Economics, Elsevier, vol. 174(C), pages 138-159.
    11. Maria Cristina Zhunio & Sharmila Vishwasrao & Eric P. Chiang, 2012. "The influence of remittances on education and health outcomes: a cross country study," Applied Economics, Taylor & Francis Journals, vol. 44(35), pages 4605-4616, December.
    12. Oded Galor & Joseph Zeira, 1993. "Income Distribution and Macroeconomics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 35-52.
    13. Askarov, Zohid & Doucouliagos, Hristos, 2020. "A meta-analysis of the effects of remittances on household education expenditure," World Development, Elsevier, vol. 129(C).
    14. Gray, Daniel & Montagnoli, Alberto & Moro, Mirko, 2021. "Does education improve financial behaviors? Quasi-experimental evidence from Britain," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 481-507.
    15. Syed Mithun Ali & Andrea Appolloni & Fausto Cavallaro & Idiano D’Adamo & Assunta Di Vaio & Francesco Ferella & Massimo Gastaldi & Muhammad Ikram & Nallapaneni Manoj Kumar & Michael Alan Martin & Abdul, 2023. "Development Goals towards Sustainability," Sustainability, MDPI, vol. 15(12), pages 1-11, June.
    16. Aristovnik, Aleksander, 2012. "The impact of ICT on educational performance and its efficiency in selected EU and OECD countries: a non-parametric analysis," MPRA Paper 39805, University Library of Munich, Germany.
    17. Ibrahim, Muazu & Alagidede, Paul, 2018. "Effect of financial development on economic growth in sub-Saharan Africa," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1104-1125.
    18. Jamal Bouoiyour, Amal Miftah, 2015. "Migration, remittances and educational levels of household members left behind: Evidence from rural Morocco," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 12(1), pages 21-40, July.
    19. Mamta B Chowdhury, 2022. "Internationalisation of education and its effect on economic growth and development," The World Economy, Wiley Blackwell, vol. 45(1), pages 200-219, January.
    20. Mr. Tigran Poghosyan, 2022. "Financial Development and Growth in the Caucasus and Central Asia," IMF Working Papers 2022/134, International Monetary Fund.
    21. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luísa Carvalho & Dora Almeida & Ana Loures & Paulo Ferreira & Fernando Rebola, 2024. "Quality Education for All: A Fuzzy Set Analysis of Sustainable Development Goal Compliance," Sustainability, MDPI, vol. 16(12), pages 1-15, June.
    2. Pruethsan Sutthichaimethee, 2024. "A Framework on Setting Strategies for Enhancing the Efficiency of State Power use in Thailand’s Pursuit of a Green Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 108-120, January.
    3. Prosper Kweku Hoeyi & Tshililo Ruddy Farisani & Jabulani Simon Tshabalala, 2025. "Assessing the Implementation and Impact of Inclusivity and Accessibility in the Free State South African Banking Sector," JRFM, MDPI, vol. 18(9), pages 1-22, August.
    4. Ninditya Nareswari & Małgorzata Tarczyńska‐Łuniewska & Katarzyna Szopik‐Depczyńska & Grațiela Georgiana Noja, 2025. "Exploring Asia's Sustainable Future: A Panel Causality Analysis of Financial Growth, Technology, and Institutional Quality in Achieving Sustainable Development Goals," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(4), pages 5185-5196, August.
    5. Xue, Pengcheng & Liu, Hanzhen & Zhao, Delong & Liu, Jiaxin, 2024. "Mineral resources and equitable economic development: South Asian mineral resources policy perspective with innovation for resources efficiency," Resources Policy, Elsevier, vol. 96(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mamadou Asngar Thierry & Ongo Nkoa Bruno Emmanuel, 2023. "Does Financial Development Increase Education Level? Empirical Evidence from Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 3878-3903, December.
    2. José R. Bucheli & Alok K. Bohara & Matías Fontenla, 2018. "Mixed effects of remittances on child education," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-18, December.
    3. Asiedu, Elizabeth & Azomahou, Théophile T. & Getachew, Yoseph & Yitbarek, Eleni, 2021. "Share the love: Parental bias, women empowerment and intergenerational mobility," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 846-867.
    4. Isaac Ehrlich & Jinyoung Kim, 2007. "The Evolution of Income and Fertility Inequalities over the Course of Economic Development: A Human Capital Perspective," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 137-174.
    5. Biswajit Mandal & Sugata Marjit & Noritsugu Nakanishi, 2018. "Outsourcing, factor prices and skill formation in countries with non-overlapping time zones," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(2), pages 289-304, August.
    6. Kirill Borissov & Stefano Bosi & Thai Ha-Huy & Leonor Modesto, 2017. "Heterogeneous Human Capital, Inequality and Growth: The Role of Patience and Skills," EUSP Department of Economics Working Paper Series 2017/03, European University at St. Petersburg, Department of Economics.
    7. De la Torre, Augusto & Schmukler, Sergio, 2007. "Emerging Capital Markets and Globalization: The Latin American Experience," IDB Publications (Books), Inter-American Development Bank, number 349, August.
    8. Samuel Bowles & Glenn C. Loury & Rajiv Sethi, 2014. "Group Inequality," Journal of the European Economic Association, European Economic Association, vol. 12(1), pages 129-152, February.
    9. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    10. Falilou Fall, 2005. "Endogenous persistent inequality," Post-Print halshs-00196084, HAL.
    11. Christopher B. Barrett, 2005. "Rural poverty dynamics: development policy implications," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 45-60, January.
    12. Hans Gersbach & Lars-H. Siemers, 2014. "Can democracy induce development? A constitutional perspective," Public Choice, Springer, vol. 159(1), pages 177-196, April.
    13. Duflo, Esther, 2004. "The medium run effects of educational expansion: evidence from a large school construction program in Indonesia," Journal of Development Economics, Elsevier, vol. 74(1), pages 163-197, June.
    14. I-Ling Shen & Frédéric Docquier & Hillel Rapoport, 2010. "Remittances and inequality: a dynamic migration model," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(2), pages 197-220, June.
    15. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934, Elsevier.
    16. Chivers, David, 2017. "Success, survive or escape? Aspirations and poverty traps," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 116-132.
    17. Hiroki KONDO, 2025. "Intergenerational Decision on Education and Migration within a Family in a Spatial Agglomeration Model," Discussion papers 25120, Research Institute of Economy, Trade and Industry (RIETI).
    18. 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.
    19. Vincenzo Lombardo, 2008. "Income distribution and Growth: A Critical Survey," Working Papers 11_2008, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    20. Stelios Michalopoulos & Elias Papaioannou, 2018. "Spatial Patterns of Development: A Meso Approach," Annual Review of Economics, Annual Reviews, vol. 10(1), pages 383-410, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:16:p:12322-:d:1216207. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.