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
891-903
Bourguignon, François
070fd429-e2bd-4dfb-bd26-80e85c8cb1e0
Verdier, Thierry
87c483ea-f473-408f-9776-d0381cab6454
2000
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), .
(doi:10.1016/S0014-2921(00)00049-0).
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
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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
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Date deposited: 19 Jul 2006
Last modified: 15 Mar 2024 07:44
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Author:
François Bourguignon
Author:
Thierry Verdier
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