Do Remittances Promote Education? Empirical Evidence from Developing Countries

Abstract

Considering that one of the Sustainable Development Goals (SDGs) is to promote education, in this regard, remittances have been suggested as a preferred motivator, especially in developing nations. In recent decades, migration from underdeveloped to developed countries has grown, which benefits the country economically and socially. Although, literature has witnessed the favorable impact of remittances on macroeconomic variables. However, little research examined these implications on education. The current study explores remittances' impact on education in developing countries. Data is taken from 90 developing countries over the period 1991-2020. Data is collected from two main sources: World Development Indicators and ICRG. For the analysis, remittances are an independent variable, whereas education is the dependent variable. Control variables include GDP per capita growth, education expenditures, urban population, and democracy. Results obtained from dynamic panel GMM indicate remittances' positive and significant impact on education. Similar results were found in the case of all control variables. The study suggests developing suitable incentives for migrants to remit, particularly the strategies persuading the costs and networks of remittances