Effect of Financial Inclusion on Educational Attainment in Sub-Saharan Africa
Abstract
The objective of our study is to examine the effect of direct access to and use of formal financial services on educational attainment in sub-Saharan Africa. The paper uses a sample of 34 sub-Saharan African countries from different sources (WDI, GFDD,) for the period 2004-2022 for the analysis. The results of the basic model suggest that greater financial inclusion through improved access to credit positively and significantly affects the level of education in sub-Saharan Africa. The study suggests that sub-Saharan African countries can take advantage of financial inclusion to improve education. Therefore, policy makers and commercial banks should promote access to and use of financial services in sub-Saharan Africa (SSA).
References
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28. Patrinos, A. H., & Psacharopoulos, G. (2002). Returns to investment in education: a further update. The World Bank.
29. Pitt M Khandker S, Chowdhury O, Millimet D (2003), "Credit Programs for the Poor and the Health Status of Children in Rural Bangladesh." International Economic Review. 2003. 44 (1); 87-118.
30. Psacharopoulos, G. (1997). Child labor versus educational attainment Some evidence from Latin America. Journal of population economics, 10(4), 377-386.
31. Quaegebeur, M & Marthi, S (2005), 'Linkages between microfinance and effective education with a focus on parental involvement', Institute for Financial Management and Research, Chennai, India.
32. S. R., & Navarro, J. D. (2008). Estudio piloto de evaluación de impacto del programa de microcréditos de Cruz Roja Española en Ruanda. Revista de Economía Mundial, (19), 83-104.
33. Shimamura, Y., & Lastarria-Cornhiel, S. (2010). Credit program participation and child schooling in rural Malawi. World Development, 38(4), 567-580.
34. Suri T, Jack W (2016). The long-run poverty and gender impacts of mobile money. Science. 354(6317): 1288-1292.
35. Thomas, D. (1990). Intra-household resource allocation : An inferential approach. Journal of human resources, 635-664.
36. Wydick, B. (1999). The effect of microenterprise lending on child schooling in Guatemala. Economic development and cultural change, 47(4), 853-869.
2. Ahmad Z, Khan A A, Tariq A (2012). Stock market development and economic growth: A comparative study of Pakistan and Bangladesh. African Journal of Business Management. 6(8): 2985.
3. Banerjee, A., et al. (2015). "The Impact of Microfinance on Education: Evidence from India." Journal of Development Economics, 115, 1-14.
4. Barnes, C, Gaile, G & Kimbombo, R (2001), 'Impact of three microfinance programs in Uganda'. Assessing the Impact of Microenterprise Services (AIMS) Project in association with the Makerere Institute of Social Research (MISR).
5. Becchetti, L., & Conzo, P. (2014). The effects of microfinance on child schooling: A retrospective approach. Applied Financial Economics, 24(2), 89-106.
6. BRAC, (2015), Bangladesh Rural Advancement Committee Retrieved from
www.brac.net.
7. Brannen, C (2010), 'An impact study of the Village Savings and Loan Association (VSLA) program in Zanzibar, Tanzania', Wesleyan University.
8. Brownstein, L, Fleck, P, Shetty, R, Sorensen, J & Vadgana, V (2007), Pathways out of Poverty, Microfinance to Empower Sub-Saharan Africa, Discussion Paper Series University of Minnesota 1-57.
9. Chen, Martha A. And Donald Snodgrass, (2001), "Managing Resources, Activities, and Risk in Urban India". The Impact of SEWA Bank (Washington, D.C.: AIMS).
10. Chepsat, FK, Obara, J & Makindi, SM (2014), 'Contribution of Microfinance credit on affordability of education of children of the rural women in Keiyo North District, Elgeyo-Marakwet County, Kenya', International Journal, vol. 2, no. 4, pp. 759-67.
11. Chowdhury and Bhuiya (2001), "Do Poverty Alleviation Programmes Reduce Inequity in Health: Lessons from Bangladesh," in Poverty Inequity and Health, ed. D. Leon and G. Walt (Oxford: Oxford University Press).
12. Datta S K, Singh K (2019). Variation and Determinants of Financial Inclusion and association with Human Development: A Crosscountry Analysis. IIMB Management Review.
13. Demirgüç-Kunt, A., et al. (2018). "The Global Findex Database 2017: Measuring Financial Inclusion and Opportunities for Growth." World Bank.
14. Dunford, C & from Hunger, F (2002), 'Microfinance as a vehicle for educating the poor', Development Bulletin, vol. 57, p. 112.
15. Dupas, P., et al. (2016). "Savings and Education: Evidence from Kenya." Journal of African Economies, 25(1), 1-25.
16. Gubert, F & Roubaud, F (2011), 'The Impact of Micro Finance Loans on Small Informal Enterprises in Madagascar', A Panel Data Analysis. Working Paper. World Bank.
17. Hofmann, E., & Marius-Gnanou, K. (2003). L'approche" genre" dans la lutte contre la pauvreté : l'exemple de la microfinance.
18. Holvoet, N. (2004). Impact of microfinance programs on children's education: do the gender of the borrower and the delivery model matter? Journal of Microfinance/ESR Review, 6(2), 3.
19. Islam, A., & Choe, C. (2013). Child labor and schooling responses to access to microcredit in rural Bangladesh. Economic Inquiry, 51(1), 46-61.
20. Ivanic M, Martin W, Zaman H (2012). Estimating the short-run poverty impacts of the 2010–11 surge in food prices. World development. 40(11): 2302-2317.
21. Jensen, H. A., & Dolberg, F. (2003). A conceptual framework for using poultry as a tool in poverty alleviation. Livestock Research for Rural Development, 15(5), 1-17.
22. Karlan, D., et al. (2016). "The Impact of Microcredit on Education: Evidence from the Philippines." Journal of Economic Development, 41(2), 1-20.
23. Littlefield, E, Morduch, J & Hashemi, S (2003), 'Is microfinance an effective strategy to reach the Millennium Development Goals?', Focus Note, vol. 24, no. 2003, pp. 1- 11.
24. Maldonado, JH & González-Vega, C (2008), 'Impact of microfinance on schooling: Evidence from poor rural households in Bolivia', World Development, vol. 36, no. 11, pp. 2440-55.
25. Nanor, MA (2008), 'Microfinance and its impact on selected districts in eastern region of Ghana', Department of Economics, Kwame Nkrumah University of Science and Technology.
26. Outreville J F (1999). Financial development, human capital and political stability. UNCTAD/OSG/DP/142
27. Ozcan B, Kiliç C (2018). The Impact of Financial Development on Human Capital: Evidence From Emerging Market Economies. International Journal of Economics and Financial Issues. 8(1): 258- 267.
28. Patrinos, A. H., & Psacharopoulos, G. (2002). Returns to investment in education: a further update. The World Bank.
29. Pitt M Khandker S, Chowdhury O, Millimet D (2003), "Credit Programs for the Poor and the Health Status of Children in Rural Bangladesh." International Economic Review. 2003. 44 (1); 87-118.
30. Psacharopoulos, G. (1997). Child labor versus educational attainment Some evidence from Latin America. Journal of population economics, 10(4), 377-386.
31. Quaegebeur, M & Marthi, S (2005), 'Linkages between microfinance and effective education with a focus on parental involvement', Institute for Financial Management and Research, Chennai, India.
32. S. R., & Navarro, J. D. (2008). Estudio piloto de evaluación de impacto del programa de microcréditos de Cruz Roja Española en Ruanda. Revista de Economía Mundial, (19), 83-104.
33. Shimamura, Y., & Lastarria-Cornhiel, S. (2010). Credit program participation and child schooling in rural Malawi. World Development, 38(4), 567-580.
34. Suri T, Jack W (2016). The long-run poverty and gender impacts of mobile money. Science. 354(6317): 1288-1292.
35. Thomas, D. (1990). Intra-household resource allocation : An inferential approach. Journal of human resources, 635-664.
36. Wydick, B. (1999). The effect of microenterprise lending on child schooling in Guatemala. Economic development and cultural change, 47(4), 853-869.
Authors
[1]
“Effect of Financial Inclusion on Educational Attainment in Sub-Saharan Africa”, Soc. sci. humanities j., vol. 8, no. 11, pp. 5902–5913, Nov. 2024, doi: 10.18535/sshj.v8i11.1472.
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