Role of education in poverty reduction: macroeconomic and social determinants form developing economies

Abstract

Education is the basis for poverty eradication and economic growth. Education provides the aim of this research is to explore educational and other environmental, economic and social determinants on poverty. The aim of this study is to measure an econometric estimation to measure the role of education on poverty reduction. The model was estimated using time series data from 1980 to 2018, using the Engle-Granger two-step co-integration technique, to obtain the economic long-term and short-term dynamic characteristics of education in reducing poverty rate in this era. This model is used to test the hypothesis that how education can uplift the economic progress of the country. Education significantly reduces the level of poverty, whereas the role of higher education seems more significant tool for alleviating poverty. The public and monetary sectors incorporate institutional features with relevant policy actions, while foreign sectors, particularly the oil sector, represent interactions with the rest of the world. A series of policy scenarios influence the industry-wide model, which is used to evaluate the government’s various options for increasing economic productivity, resulting in sustained acceleration of growth and poverty reduction in the South Asian economics.