Achieving the sustainable development goals in developing countries: The role of remittances and the mediating effect of financial inclusion

Abstract

This study investigates the pivotal role of remittances in advancing Sustainable Development Goals (SDGs) within developing countries. While previous literature has acknowledged the potential of remittances in fostering growth, empirical analyses on their impact on SDGs remain scant. Utilizing data from 109 developing countries spanning 2000 to 2022 and employing system GMM and the Lewbel's (2012) estimator to tackle endogeneity issues, we unveil significant positive effects of remittances on SDGs. Additionally, we identify financial inclusion as a mediating factor enhancing remittances' impacts on SDGs. Moreover, we show that remittances, international aid, and government spending exhibit complementary roles in SDGs attainment.