Baskaran, Thushyanthan and Hessami, Zohal (2010): Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis.
Download (318Kb) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis|
|Keywords:||Globalization, public education expenditures, educational policy|
|Subjects:||H - Public Economics > H4 - Publicly Provided Goods > H42 - Publicly Provided Private Goods
F - International Economics > F1 - Trade > F15 - Economic Integration
H - Public Economics > H5 - National Government Expenditures and Related Policies > H52 - Government Expenditures and Education
|Depositing User:||Zohal Hessami|
|Date Deposited:||11. Oct 2010 02:53|
|Last Modified:||12. Feb 2013 01:30|
Aizenman, J. and Y. Jinjarak (2009). Globalisation and Developing Countries - A Shrinking Tax Base? Journal of Development Studies 45 (5), 653-671.
Anderson, F. and K. A. Konrad (2003). Human Capital Investment and Globalization in Extortionary States. Journal of Public Economics 87 (7-8), 1539-1555.
Ansell, B. W. (2008). Traders, Teachers, and Tyrants: Democracy, Globalization, and Public Investment in Education. International Organization 62 (2), 289-322.
Avelino, G., D. S. Brown, and W. Hunter (2005). The Effects of Capital Mobility, Trade Openness, and Democracy on Social Spending in Latin America, 1980 - 1999. American Journal of Political Science 49 (3), 625-641.
Birdsall, N. (1996). Public Spending on Higher Education in Developing Countries: Too Much or Too Little? Economics of Education Review 15 (4), 407-419.
Black, D. (1948). On the Rationale of Group Decision-Making. Journal of Political Economy 56 (1), 23-34.
Blanden, J. and S. Machin (2004). Educational Inequality and the Expansion of UK Higher Education. Scottish Journal of Political Economy 51 (2), 230-249.
Blundell, R. and S. Bond (1998). Initial Conditions and Moment Restrictions in Dynamic Panel Data Models. Journal of Econometrics 87 (1), 115-143.
Blundell, R. and S. Bond (2000). GMM Estimation with Persistent Panel Data: An Application to Production Functions. Econometric Reviews 19 (3), 321-340.
Braumoeller, B. F. (2004). Hypothesis Testing and Multiplicative Interaction Terms. International Organization 58 (4), 807-820.
Busemeyer, M. R. (2007). Social Democrats and Education Spending: A Refined Perspective on Supply-Side Strategies. Max Planck Institute for the Study of Societies Working Paper No. 02/07, 1-25.
Carnoy, M. (1992). The Case for Investing in Basic Education. UNICEF, New York.
Carnoy, M. (1999). Globalization and Educational Reform: What Planners Need to Know. Retrieved from http://unesdoc.unesco.org/images/0012/001202/120274e.pdf, UNESCO International Institute for Educational Planning, Paris.
Cohen, B. (1996). Phoenix Risen: The Resurrection of Global Finance. World Politics 48 (2), 268-296.
Congleton, R. D. and R. W. Bennett (1995). On the Political Economy of State Highway Expenditures: Some Evidence of the Relative Performance of Alternative Public Choice Models. Public Choice 84 (1-2), 1-24.
Congleton, R. D. and W. F. Shughart (1990). The Growth of Social Security: Electoral Push or Political Pull? Economic Inquiry 28 (1), 109-132.
Docquier, F. and A. Marfouk (2006). International Migration by Educational Attainment, 1990 - 2000. In C. Özden and M. Schiff (Eds.), International Migration, Remittances, and Brain Drain, pp. 151-196. Washington, D. C.: The World Bank.
Dollar, D. (2005). Globalization, Poverty, and Inequality Since 1980. World Bank Research Observer 20 (2), 145-175.
Downs, A. (1957). An Economic Theory of Democracy. Boston, MA: Harper and Row.
Dreher, A. (2006a). Does Globalization Aect Growth? Evidence from a New Index of Globalization. Applied Economics 38 (10), 1091-1110.
Dreher, A. (2006b). The Influence of Globalization on Taxes and Social Policy: An Empirical Analysis for OECD Countries. European Journal of Political Economy 22 (1), 179-201.
Egger, P. and D. M. Radulescu (2009). The Influence of Labour Taxes on the Migration of Skilled Workers. World Economy 32 (9), 1365-1379.
Feenstra, R. C. and G. H. Hanson (1999). The Impact of Outsourcing and High-Technology Capital on Wages: Estimates for the United States, 1979 - 1990. Quarterly Journal of Economics 114 (3), 907-940.
Goldberg, P. K. and N. Pavenik (2007). Distributional Effects of Globalization in Developing Countries. Journal of Economic Literature 45 (1), 39-82.
Green, A. (1999). Education and Globalization in Europe and East Asia: Convergent and Divergent Trends. Journal of Education Policy 14 (1), 55-71.
Grogger, J. and G. H. Hanson (forthcoming). Income Maximization and the Selection and Sorting of International Migrants. Journal of Development Economics.
Hansen, W. L. and B. A. Weisbrod (1969). Benefits, Costs, and Finance of Public Higher Education. Chicago, IL: Markham Publishing.
Hanushek, E. A. and L. Woessmann (2006). Does Educational Tracking Affect Performance and Inequality? Differences-in-Differences Evidence Across Countries. Economic Journal 116 (510), C63-C76.
Haupt, A. and E. Janeba (2009). Education, Redistribution, and the Threat of Brain Drain. International Tax and Public Finance 16 (1), 1-24.
Hines, J. R. and L. H. Summers (2009). How Globalization Affects Tax Design. In J. R. Brown and J. M. Poterba (Eds.), Tax Policy and the Economy, pp. 123-157. Chicago, IL: University of Chicago Press.
James, J. (2002). Information Technology, Transaction Costs and Patterns of Globalization in Developing Countries. Review of Social Economy 60 (4), 507-519.
Judson, R. A. and A. L. Owen (1999). Estimating Dynamic Panel Data Models: A Guide for Macroeconomists. Economics Letters 65 (1), 9-15.
Lassibille, G. and B. Rasera (1998). UNESCO Technical Reference Manual: Statistical Information System on Expenditure in Education (SISEE).
Lockheed, M. E. and A. Verspoor (1991). Improving Primary Education in Developing Countries. Oxford, UK: Oxford University Press.
McNeely, C. L. (1995). Prescribing National Education Policies: The Role of International Organizations. Comparative Education Review 39 (4), 483-507.
Naidoo, R. and I. Jamieson (2005). Knowledge in the Marketplace: The Global Commodification of Teaching and Learning in Higher Education. In P. Ninnes and M. Hellsten (Eds.), Internationalizing Higher Education: Critical Explorations of Pedagogy and Policy, pp. 37-51. Dordrecht: Springer.
Nannestad, P. and M. Paldam (1994). The VP-Function: A Survey of the Literature on Vote and Popularity Functions After 25 Years. Public Choice 79 (3-4), 213-245.
Nickell, S. J. (1981). Biases in Dynamic Models with Fixed Effects. Econometrica 49 (6), 1417-1426.
Poole, K. T. and R. S. Daniels (1985). Ideology, Party and Voting in the US Congress, 1959 - 1980. American Political Science Review 79 (2), 373-399.
Poutvaara, P. (2008). Public Education in an Integrated Europe: Studying to Migrate and Teaching to Stay? Scandinavian Journal of Economics 110 (3), 591-608.
Psacharopoulos, G. (1985). Returns to Education: A Further International Update and Implications. Journal of Human Resources 20 (4), 583-604.
Rodrik, D. (1997). Trade, Social Insurance, and the Limits to Globalization. NBER Working Paper No. 5905.
Roodman, D. (2009a). A Note on the Theme of Too Many Instruments. Oxford Bulletin of Economics and Statistics 71 (1), 135-158. Roodman, D. (2009b). How To Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata. Stata Journal 9 (1), 86-136.
Schulze, G. G. and H. W. Ursprung (1999). Globalization of the Economy and the Nation State. World Economy 22 (3), 295-352.
Schwarz, P. (2007). Does Capital Mobility Reduce the Corporate-Labor Tax Ratio? Public Choice 130 (3-4), 363-380.
Spring, J. (2008). Research on Globalization and Education. Review of Educational Research 78 (2), 330-363.
Windmeijer, F. (2005). A Finite Sample Correction for the Variance of Linear Efficient Two-Step GMM Estimators. Journal of Econometrics 126 (1), 25-51.
Wälde, K. (2000). Egalitarian and Elitist Education Systems as the Basis for International Differences in Wage Inequality. European Journal of Political Economy 16 (3), 445-468.
Zodrow, G. and P. Mieszkowski (1986). Pigou, Tiebout, Property Taxation, and the Underprovision of Local Public Goods. Journal of Urban Economics 19 (3), 356-370.