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

Author

Listed:
  • 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.

Suggested Citation

  • Bourguignon, F. & Verdier, T., 1999. "Is Financial Openness bad for Education? A Political Economy Perspective on Development," DELTA Working Papers 1999-20, DELTA (Ecole normale supérieure).
    • Handle: RePEc:del:abcdef:1999-20
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    2. 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.
    3. 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.
    4. Sebastian Galiani & Daniel Heymann, 2005. "Land-Rich Economies, Education and Economic Development," DEGIT Conference Papers c010_048, DEGIT, Dynamics, Economic Growth, and International Trade.
    5. 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.
    6. 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.
    7. Debajyoti Chakrabarty & Areendam Chanda & Chetan Ghate, 2005. "Education and growth in the presence of capital flight," Discussion Papers 05-03, Indian Statistical Institute, Delhi.
    8. Guimaraes, Bernardo & Sheedy, Kevin D., 2024. "Institutional specialization," Journal of International Economics, Elsevier, vol. 150(C).
    9. Ruben Segura-Cayuela, 2006. "Inefficient Policies, Inefficient Institutions and Trade," 2006 Meeting Papers 502, Society for Economic Dynamics.

    More about this item

    Keywords

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    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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