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Public Education Spending in a Globalized World: Is there a Shift in Priorities Across Educational Stages?

Author

Listed:
  • 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 effect of globalization on public expenditures allocated to different stages of education. First, we derive theoretically that globalization’s influence on education expenditures depends on the type of government. For benevolent governments, the model suggests that expenditures for higher education will increase and expenditures for basic education will decline with deepening economic integration. For Leviathan governments, on the other hand, the effects of globalization on public education spending cannot be unambiguously predicted. In the second part of the paper, we empirically analyze globalization’s influence on primary, secondary, and tertiary education expenditures with panel data covering 104 countries over the 1992 - 2006 period. The results indicate that globalization has led in both industrialized and developing countries to more spending for secondary and tertiary and to less spending for primary education.

Suggested Citation

  • Thushyanthan Baskaran & Zohal Hessami, 2011. "Public Education Spending in a Globalized World: Is there a Shift in Priorities Across Educational Stages?," Working Paper Series of the Department of Economics, University of Konstanz 2011-42, Department of Economics, University of Konstanz.
  • Handle: RePEc:knz:dpteco:1142
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    File URL: http://www.uni-konstanz.de/FuF/wiwi/workingpaperseries/WP_42-baskaran-hessami-11.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Globalization; economic integration; public education; education expenditures;

    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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