Linking international financial inflows and access to drinking water, sanitation and hygiene in schools

Abstract

Improving access to drinking water, sanitation, and hygiene (WASH) is a sustainable development objective with significant implications for economic growth and human capital development. Access to these basic services is even more important in the school context, as it guarantees better health and improves children's educational performance. This study analyses for the first time the effect of international financial inflows on access to WASH in schools, using panel data from 50 developing countries over the period 2010–2022. The empirical results show that, while foreign direct investment (FDI) and remittances improve access to WASH in schools at the national level, official development assistance exerts a negative effect. This result holds for both primary and secondary schools. The findings further indicate that above a certain threshold, official development assistance improves access to WASH, while FDI reduces it. Overall, this study underscores the crucial role of international financial inflows in expanding access to WASH in schools in developing countries.