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

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  • Baskaran, Thushyanthan
  • Hessami, Zohal

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

  • Baskaran, Thushyanthan & Hessami, Zohal, 2010. "Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis," MPRA Paper 25750, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:25750
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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. 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.

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    More about this item

    Keywords

    Globalization; public education expenditures; educational policy;
    All these keywords.

    JEL classification:

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

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