The Political Economy of Education and Development in an Open Economy
Abstract
If the price effect of opening up a developing economy may be expected to act as a disincentive for investment in human capital, the opposite is likely to be true of the income effect, especially in the presence of credit market imperfections among the poor. It is shown in this paper that this may not be the case anymore in a society initially dominated by an oligarchic capitalist Elite that is afraid of losing its political control in favor of an educated middle class. Although it may sometimes be in its interest to democratize by subsidizing education when the economy is closed, incentives to do so disappear when the economy is open to trade or factor flows.Download Info
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Paper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 2001-11.Length:
Date of creation: 2001
Date of revision:
Handle: RePEc:del:abcdef:2001-11
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Keywords:Other versions of this item:
- François Bourguignon & Thierry Verdier, 2005. "The Political Economy of Education and Development in an Open Economy," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 529-548, 08.
- Bourguignon, François & Verdier, Thierry, 2001. "The Political Economy of Education and Development in an Open Economy," CEPR Discussion Papers 3075, C.E.P.R. Discussion Papers.
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
- F15 - International Economics - - Trade - - - Economic Integration
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
This paper has been announced in the following NEP Reports:
- NEP-AFR-2003-03-19 (Africa)
- NEP-ALL-2003-03-19 (All new papers)
- NEP-DEV-2003-03-19 (Development)
References
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- Theo S Eicher & Cecilia Garcia Penalosa, .
"Inequality and Growth,"
Discussion Papers in Economics at the University of Washington
0083, Department of Economics at the University of Washington.
- Theo S Eicher & Cecilia Garcia Penalosa, . "Inequality and Growth," Working Papers 0083, University of Washington, Department of Economics.
- Bourguignon, Francois & Verdier, Thierry, 2000.
"Oligarchy, democracy, inequality and growth,"
Journal of Development Economics,
Elsevier, vol. 62(2), pages 285-313, August.
- Bourguignon, F. & Verdier, T., 1997. "Oligarchy, Democracy, Inequality and Growth," DELTA Working Papers 97-10, DELTA (Ecole normale supérieure).
- Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-78, December.
- Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Debajyoti Chakrabarty & Areendam Chanda & Chetan Ghate, 2006.
"Education, Growth, and Redistribution in the Presence of Capital Flight,"
The B.E. Journal of Macroeconomics,
De Gruyter, vol. 0(2), pages 14.
- Areendam Chanda & Debajyoti Chakrabarty & Chetan Ghate, . "Education, Growth, and Redistribution in the Presence of Capital Flight," Departmental Working Papers 2006-10, Department of Economics, Louisiana State University.
- 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.
- B.P. Zaaruka & J.W. Fedderke, 2011. "Indicators of Political and Economic Institutions in Tanzania: 1884 - 2008," Working Papers 231, Economic Research Southern Africa.
- Åsa Johansson & Yvan Guillemette & Fabrice Murtin & David Turner & Giuseppe Nicoletti & Christine de la Maisonneuve & Philip Bagnoli & Guillaume Bousquet & Francesca Spinelli, 2013. "Long-Term Growth Scenarios," OECD Economics Department Working Papers 1000, OECD Publishing.
- Rubén Segura-Cayuela, 2006.
"Inefficient policies, inefficient institutions and trade,"
Banco de España Working Papers
0633, Banco de España.
- Ruben Segura-Cayuela, 2006. "Inefficient Policies, Inefficient Institutions and Trade," 2006 Meeting Papers 502, Society for Economic Dynamics.
- Thierry Verdier, 2005. "Intégration commerciale « socialement responsable » : une approche en termes d'économie politique," Revue d’économie du développement, De Boeck Université, vol. 19(4), pages 55-121.
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