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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), pp. 891-903. (doi:10.1016/S0014-2921(00)00049-0).

Record type: Article


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


Local EPrints ID: 33481
ISSN: 0014-2921
PURE UUID: 40d5dfe6-7df7-4ed5-ad99-167a1fb3fd7e

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Date deposited: 19 Jul 2006
Last modified: 17 Jul 2017 15:52

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Author: François Bourguignon
Author: Thierry Verdier

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