Effects of mobile money on education in Sub-Saharan Africa: Role of financial institutions
Keywords:
Mobile money, education, financial institutions, two-stage least squares, Sub-Saharan Africa.Abstract
Education is considered a fundamental pillar of developing countries, and access to funding is a major challenge. This article examines the effects of mobile money on education using a panel of 34 Sub-Saharan African countries from 2004 to 2020, highlighting the role of financial institutions. The results from two-stage least squares indicate that mobile money enhances education in Sub-Saharan Africa. This effect is greater when mobile money and financial institutions interact. These findings support an integrated strategy that promotes both the expansion of mobile money services and the capacity building of financial institutions to support education in Sub-Saharan African countries. To improve education, policymakers should encourage the integration of mobile payment services into the financial system, whilst establishing a regulatory framework to protect household savings.
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