The University of Southampton
University of Southampton Institutional Repository

Is financial openness bad for education? A political economy perspective

Is financial openness bad for education? A political economy perspective
Is financial openness bad for education? A political economy perspective
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
democratization, openness, political economy, education
0014-2921
891-903
Bourguignon, François
070fd429-e2bd-4dfb-bd26-80e85c8cb1e0
Verdier, Thierry
87c483ea-f473-408f-9776-d0381cab6454
Bourguignon, François
070fd429-e2bd-4dfb-bd26-80e85c8cb1e0
Verdier, Thierry
87c483ea-f473-408f-9776-d0381cab6454

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).

Record type: Article

Abstract

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

This record has no associated files available for download.

More information

Published date: 2000
Additional Information: JEL classification codes: F2, H1, I2, O1
Keywords: democratization, openness, political economy, education

Identifiers

Local EPrints ID: 33481
URI: http://eprints.soton.ac.uk/id/eprint/33481
ISSN: 0014-2921
PURE UUID: 40d5dfe6-7df7-4ed5-ad99-167a1fb3fd7e

Catalogue record

Date deposited: 19 Jul 2006
Last modified: 15 Mar 2024 07:44

Export record

Altmetrics

Contributors

Author: François Bourguignon
Author: Thierry Verdier

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×