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Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis

Author

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  • Thushyanthan Baskaran

    () (Gothenburg Centre of Globalization and Development, Department of Economics, University of Gothenburg, Sweden)

  • Zohal Hessami

    () (Department of Economics, University of Konstanz, Germany)

Abstract

This paper studies the relationship between globalization and the composition of public education expenditures. The theoretical model is embedded in a median voter setting and is based on the assumption that globalization leads to lower tax revenues as well as an increase in the relative wage of high-skilled workers. Overall, the theoretical discussion suggests that globalization induces a shift from primary to tertiary education expenditures, which is backed up by empirical evidence from dynamic panel estimations for 121 countries over the 1992 - 2006 period. A possible implication of the shift in educational priorities towards higher education is an increase in income inequality

Suggested Citation

  • Thushyanthan Baskaran & Zohal Hessami, 2010. "Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis," Working Paper Series of the Department of Economics, University of Konstanz 2010-03, Department of Economics, University of Konstanz.
  • Handle: RePEc:knz:dpteco:1003
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    References listed on IDEAS

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    Cited by:

    1. Margarida Chagas Lopes, 2012. "Education, Development and Knowledge: New Forms of Unequal Change Under Globalization – The Case of SSA Countries," The IUP Journal of Knowledge Management, IUP Publications, vol. 0(2), pages 45-60, April.
    2. Lopes, Margarida, 2011. "Education, vocational training and R&D: towards new forms of labor market regulation," MPRA Paper 32412, University Library of Munich, Germany.
    3. Thushyanthan Baskaran & Zohal Hessami, 2012. "Public education spending in a globalized world:," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(5), pages 677-707, October.
    4. Niklas Potrafke, 2013. "Economic Freedom and Government Ideology across the German States," Regional Studies, Taylor & Francis Journals, vol. 47(3), pages 433-449, March.

    More about this item

    Keywords

    Globalization; public education expenditures; educational policy;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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