International capital market integration, educational choice and economic growth
By: by Hartmut Egger ... [et al.].
Contributors: Egger, Hartmut.
Series: Discussion paper ;; no. 1863; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1863
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Education, Higher.; Economic development.; Capital market.; International economic integration.
Description: "This paper examines the impact of capital market integration (CMI) on higher education and economic growth. We take into account that participation in higher education is non-compulsory and depends on individual choice. Integration increases (decreases) the incentives to participate in higher education in capital-importing (-exporting) economies, all other things equal. Increased participation in higher education enhances productivity progress and is accompanied by rising wage inequality. From a national policy point of view, education expenditure should increase after integration of similar economies. Using foreign direct investment (FDI) as a measure for capital flows, we present empirical evidence which largely confirms our main hypothesis: An increase in net capital inflows in response to CMI raises participation in higher education and thereby fosters economic growth. We apply a structural estimation approach to fully track the endogenous mechanisms of the model"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 12/7/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.