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Is Financial Openness bad for Education? A Political Economy Perspective on Development

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  • Bourguignon, F.
  • Verdier, T.

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.

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Bibliographic Info

Paper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 1999-20.

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Length: 16 pages
Date of creation: 1999
Date of revision:
Publication status: Published in European Economic Review, vol. 44, no. 4-6, pp. 891-903.
Handle: RePEc:del:abcdef:1999-20

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Keywords: INTERNATIONAL AFFAIRS ; ECONOMIC DEVELOPMENT ; GOVERNMENT;

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References

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  1. Bourguignon, Francois & Verdier, Thierry, 2000. "Oligarchy, democracy, inequality and growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 285-313, August.
  2. Robert C. Feenstra, 1986. "Incentive Compatible Trade Policies," NBER Working Papers 1977, National Bureau of Economic Research, Inc.
  3. Mo, Pak Hung, 2000. "Income Inequality and Economic Growth," Kyklos, Wiley Blackwell, vol. 53(3), pages 293-315.
  4. Lewis, Tracy R. & Feenstra, Robert & Ware, Roger, 1989. "Eliminating price supports : A political economy perspective," Journal of Public Economics, Elsevier, vol. 40(2), pages 159-185, November.
  5. Bruno Frey, 1971. "Why do high income people participate more in politics?," Public Choice, Springer, vol. 11(1), pages 101-105, September.
  6. Romer, Thomas, 1975. "Individual welfare, majority voting, and the properties of a linear income tax," Journal of Public Economics, Elsevier, vol. 4(2), pages 163-185, February.
  7. Perotti, Roberto, 1993. "Political Equilibrium, Income Distribution, and Growth," Review of Economic Studies, Wiley Blackwell, vol. 60(4), pages 755-76, October.
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Cited by:
  1. Sebastian Galiani & Daniel Heymann & Carlos Dabus & Fernando Tohme, 2007. "Land-Rich Economies, Education and Economic Development," CEDLAS, Working Papers 0049, CEDLAS, Universidad Nacional de La Plata.
  2. Debajyoti Chakrabarty, 2006. "Education, Growth, and Redistribution in the Presence of Capital Flight," Papers on Entrepreneurship, Growth and Public Policy 2006-21, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  3. Galiani, Sebastian & Heymann, Daniel & Dabús, Carlos & Tohmé, Fernando, 2008. "On the emergence of public education in land-rich economies," Journal of Development Economics, Elsevier, vol. 86(2), pages 434-446, June.
  4. Debajyoti Chakrabarty & Areendam Chanda & Chetan Ghate, 2005. "Education and Growth in the Presence of Capital Flight," Discussion Papers of DIW Berlin 477, DIW Berlin, German Institute for Economic Research.
  5. Rubén Segura-Cayuela, 2006. "Inefficient policies, inefficient institutions and trade," Banco de Espa�a Working Papers 0633, Banco de Espa�a.

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