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Remittances and investment in education: Evidence from Ghana

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  • Kwabena Gyimah-Brempong
  • Elizabeth Asiedu

Abstract

This paper uses both cross-section and pseudo-panel data to investigate the effects of remittances on investment in education in Ghana. We find that remittances significantly increase the probability that families enroll their children in primary and secondary schools, suggesting that remittances increase education human capital formation. The impact of remittances on the probability of primary and secondary school enrollment is particularly strong for international remittance. In addition, there is evidence that remittances to female-headed households increase education investment more than do remittances to male-headed households. We interpret our results to mean that international remittances improve prospects for economic growth and decrease poverty in the long run through the human capital channel. Our results are robust to sample and estimation method.

Suggested Citation

  • Kwabena Gyimah-Brempong & Elizabeth Asiedu, 2015. "Remittances and investment in education: Evidence from Ghana," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(2), pages 173-200, March.
  • Handle: RePEc:taf:jitecd:v:24:y:2015:i:2:p:173-200
    DOI: 10.1080/09638199.2014.881907
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    Cited by:

    1. Asongu, Simplice & Odhiambo, Nicholas, 2019. "Boosting quality education with inclusive human development: empirical evidence from sub-Saharan Africa," MPRA Paper 94014, University Library of Munich, Germany.
    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Enhancing ICT for Quality Education in Sub-Saharan Africa," Working Papers 19/007, European Xtramile Centre of African Studies (EXCAS).
    3. Simplice Asongu & Ndemaze Asongu, 2018. "The comparative exploration of mobile money services in inclusive development," International Journal of Social Economics, Emerald Group Publishing, vol. 45(1), pages 124-139, January.
    4. Kim, Youngwan & Sohn, Hyuk-Sang & Park, Bokyeong, 2019. "Make the village better: An evaluation of the Saemaul Zero Hunger Communities Project in Tanzania and Bangladesh," World Development, Elsevier, vol. 124(C), pages 1-1.
    5. Le Thanh Tung, 2018. "The Impact Of Remittances On Domestic Investment In Developing Countries: Fresh Evidence From The Asia-Pacific Region," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 9(2).
    6. Andrew V. Stephenson & Amanda Wilsker, 2016. "Consumption Effects of Foreign Remittances in Jamaica," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(3), pages 309-320, August.

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