Suchergebnisse

Abstract For attaining Sustainable economic development in lower and lower-middle-income nations, the role of poverty reduction has been critically addressed along with the economic determents. The purpose of this Study is to evaluate the role of education and financial inclusion in poverty reduction in lower and lower-middle-income countries for the period 2004-2020 with a panel of 140 nations. Cross-sectional dependency test (CDS), panel unit root test, panel cointegration test, Generalized Methods of Moment (GMM), and system –GMM were among the econometrical techniques used in the study. The CDS findings indicated that research units have shared dynamics. After the initial difference, the variables revealed by the stationarity test were combined. A panel cointegration test was used to show the long-term relationship between education, financial inclusion, and poverty. The study found that government investment in education helps to reduce poverty, demonstrating a negative relationship between the two. Furthermore, integrating the people into the formal financial system has accelerated the process of poverty reduction since formal financial advantages provide earning possibilities and increased buying power, resulting in a greater quality of life. Directional causality tests revealed feedback hypothesis holds in explaining the nexus between education, financial inclusion, and poverty, i.e., [EDßàPoverty; FIßàPoverty]. For policy reform and restructure, it is essential to pay considerable attention to development in education and access to the formal financial system because progress in education and financial have positive spillover effects on the aggregated economy.