Financial development boosts human capital in low-income countries, spurring economic growth.
The research looked at how money and economic growth affect education in poor countries. They studied data from 12 countries from 1980 to 2016. They found that more money in the economy and private loans help education, but bank loans hurt it. They also found that education helps the economy grow. The study suggests that focusing on improving the financial sector and growing the economy can help make education better in poor countries.