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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. Simplice Asongu & Ndemaze Asongu, 2018. "The comparative exploration of mobile money services in inclusive development," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(1), pages 124-139, January.
    2. 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.
    3. Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "Boosting quality education with inclusive human development: Empirical evidence from Sub-Saharan Africa," Working Papers 25364, University of South Africa, Department of Economics.
    4. Asongu, Simplice & Odhiambo, Nicholas, 2019. "Enhancing ICT for Quality Education in Sub-Saharan Africa," MPRA Paper 93531, University Library of Munich, Germany.
    5. Ibrahim A. Adekunle & Sheriffdeen A. Tella & Kolawole Subair & Soliu B. Adegboyega, 2020. "Remittances and Financial Development in Africa," Research Africa Network Working Papers 20/081, Research Africa Network (RAN).
    6. Ibrahim A. Adekunle & Sheriffdeen A. Tella & Kolawole Subair & Soliu B. Adegboyega, 2020. "Remittances and Financial Development in Africa," Working Papers 20/081, European Xtramile Centre of African Studies (EXCAS).
    7. 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).
    8. Peter Nderitu GITHAIGA, 2019. "Foreign Remittances, Private Sector Investment and Banking Sector Development," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 3(2), pages 85-112.
    9. Suwastika Naidu & Atishwar Pandaram & Anand Chand, 2017. "A Johansen Cointegration Test for the Relationship between Remittances and Economic Growth of Japan," Modern Applied Science, Canadian Center of Science and Education, vol. 11(10), pages 137-137, October.
    10. Adeabah, David & Asongu, Simplice & Andoh, Charles, 2021. "Remittances, ICT and pension income coverage: The international evidence," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    11. Thomas Yeboah & Emmanuel Frimpong Boamah & Thomas Padi Appai, 2021. "Broadening the Remittance Debate: Reverse Flows, Reciprocity and Social Relations Between UK-Based Ghanaian Migrants and Families Back Home," Journal of International Migration and Integration, Springer, vol. 22(1), pages 47-68, March.
    12. Ibrahim A. Adekunle & Sheriffdeen A. Tella, 2021. "Remittances and the Future of African Economies," Working Papers 21/053, European Xtramile Centre of African Studies (EXCAS).
    13. Muhammad Wasif Zafar & Muhammad Mansoor Saleem & Mehmet Akif Destek & Abdullah Emre Caglar, 2022. "The dynamic linkage between remittances, export diversification, education, renewable energy consumption, economic growth, and CO2 emissions in top remittance‐receiving countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(1), pages 165-175, February.
    14. Ranjan Kumar Dash, 2020. "Impact of Remittances on Domestic Investment: A Panel Study of Six South Asian Countries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 21(1), pages 7-30, March.
    15. Van Bon Nguyen, 2023. "The remittance inflows - private investment nexus in Asian developing countries: does institutional quality matter?," Economic Research Guardian, Mutascu Publishing, vol. 13(1), pages 31-46, June.
    16. Ibrahim A. Adekunle & Sheriffdeen A. Tella & Kolawole Subair & Soliu B. Adegboyega, 2020. "Remittances and Financial Development in Africa," Working Papers of the African Governance and Development Institute. 20/081, African Governance and Development Institute..
    17. Ibrahim A. Adekunle & Sheriffdeen A. Tella, 2021. "Remittances and the Future of African Economies," Working Papers of the African Governance and Development Institute. 21/053, African Governance and Development Institute..
    18. 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.
    19. Hari Sharma & John Gibson, 2020. "Effects of International Migration on Child Schooling and Child Labour: Evidence from Nepal," Working Papers in Economics 20/07, University of Waikato.
    20. repec:kqi:journl:2017-1-6 is not listed on IDEAS
    21. Williams, Kevin, 2024. "Remittances and government expenditures on human capital in developing countries," International Economics, Elsevier, vol. 178(C).
    22. Dambar Uprety, 2017. "The Impact of Remittances on Economic Growth in Nepal," Journal of Development Innovations, KarmaQuest International, vol. 1(1), pages 114-134, February.
    23. Abreham Adera, 2023. "Do migrant remittances have state de-legitimizing tendencies? A micro-survey based evidence from Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(1), pages 2197323-219, December.

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