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Ouverture et développement. Considérations d'économie politique

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  • François Bourguignon
  • Thierry Verdier

Abstract

This paper presents a model in which education affects simultaneously individual productivity and political participation. A capitalist oligarchy initially holds political power in a developing economy where the majority of workers are uneducated. When the economy is closed, it can be in the interest of the capitalist Elite to subsidize the education of the workers in order to increase the domestic return on capital. This incentive however disappears when the economy becomes open to foreign capital flows. The paper investigates the costs and benefits of openness from the point of view of the various agents and the national economy as a whole. Classification JEL : O11, O15, D72.

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Bibliographic Info

Article provided by Presses de Sciences-Po in its journal Revue économique.

Volume (Year): 52 (2001)
Issue (Month): 3 ()
Pages: 495-506

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Handle: RePEc:cai:recosp:reco_523_0495

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Web page: http://www.cairn.info/revue-economique.htm

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Cited by:
  1. Christophe Ehrhart, 2009. "The effects of inequality on growth: a survey of the theoretical and empirical literature," Working Papers 107, ECINEQ, Society for the Study of Economic Inequality.

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