Is financial openness bad for education? A political economy perspective

Bourguignon, François and Verdier, Thierry (2000) Is financial openness bad for education? A political economy perspective. European Economic Review, 44, (4-6), 891-903. (doi:10.1016/S0014-2921(00)00049-0).


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This paper presents a simple model of the links between education, democratization and economic development. In a context of imperfect capital markets, we investigate the incentives for a capitalist oligarchy to subsidize the education of poor workers and to initiate a political transition. It is shown that international financial liberalization, while stimulating physical capital accumulation, reduces the capitalist elite willingness to subsidize domestic human capital accumulation in the medium run. It thus delays, without necessarily impeding the process of democratization

Item Type: Article
Additional Information: JEL classification codes: F2, H1, I2, O1
ISSNs: 0014-2921 (print)
Related URLs:
Keywords: democratization, openness, political economy, education
Subjects: J Political Science > JC Political theory
H Social Sciences > HB Economic Theory
L Education > L Education (General)
Divisions: University Structure - Pre August 2011 > School of Social Sciences > Economics
ePrint ID: 33481
Date Deposited: 19 Jul 2006
Last Modified: 06 Aug 2015 02:31

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