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Is financial openness bad for education? A political economy perspective on development

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  • Bourguignon, Francois
  • Verdier, Thierry

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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Suggested Citation

  • Bourguignon, Francois & Verdier, Thierry, 2000. "Is financial openness bad for education? A political economy perspective on development," European Economic Review, Elsevier, vol. 44(4-6), pages 891-903, May.
    • Handle: RePEc:eee:eecrev:v:44:y:2000:i:4-6:p:891-903
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    References listed on IDEAS

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    1. Pak Hung Mo, 2000. "Income Inequality and Economic Growth," Kyklos, Wiley Blackwell, vol. 53(3), pages 293-315, August.
    2. Bourguignon, Francois & Verdier, Thierry, 2000. "Oligarchy, democracy, inequality and growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 285-313, August.
    3. Roberto Perotti, 1993. "Political Equilibrium, Income Distribution, and Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(4), pages 755-776.
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    5. 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.
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    7. Spector, David, 2001. "Is it possible to redistribute the gains from trade using income taxation?," Journal of International Economics, Elsevier, vol. 55(2), pages 441-460, December.
    8. Brady, Henry E. & Verba, Sidney & Schlozman, Kay Lehman, 1995. "Beyond SES: A Resource Model of Political Participation," American Political Science Review, Cambridge University Press, vol. 89(2), pages 271-294, June.
    9. Bruno Frey, 1971. "Why do high income people participate more in politics?," Public Choice, Springer, vol. 11(1), pages 101-105, September.
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    Cited by:

    1. Chakrabarty Debajyoti & Chanda Areendam & Ghate Chetan, 2006. "Education, Growth, and Redistribution in the Presence of Capital Flight," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(2), pages 1-41, November.
    2. Sebastian Galiani & Daniel Heymann, 2005. "Land-Rich Economies, Education and Economic Development," DEGIT Conference Papers c010_048, DEGIT, Dynamics, Economic Growth, and International Trade.
    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. Abatemarco, Antonio, 2016. "Doing rawls justice: Evidence from the PSID," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy, vol. 10, pages 1-39.
    5. 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.
    6. Ruben Segura-Cayuela, 2006. "Inefficient Policies, Inefficient Institutions and Trade," 2006 Meeting Papers 502, Society for Economic Dynamics.
    7. Xiaozhun Peng & Hongyou Lu & Jiaming Fu & Zhijuan Li, 2021. "Does Financial Development Promote the Growth of Property Income of China’s Urban and Rural Residents?," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    8. Guimaraes, Bernardo & Sheedy, Kevin D., 2024. "Institutional specialization," Journal of International Economics, Elsevier, vol. 150(C).

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    More about this item

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • H1 - Public Economics - - Structure and Scope of Government
    • I2 - Health, Education, and Welfare - - Education
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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