Globalization, Redistribution, and the Composition of Public Education Expenditures

31 Pages Posted: 2 Feb 2010

See all articles by Thushyanthan Baskaran

Thushyanthan Baskaran

University of Goettingen (Göttingen)

Zohal Hessami

University of Konstanz, Department of Economics

Date Written: January 2010

Abstract

We analyze whether globalization affects the composition of public expenditures for education by integrating arguments from the Heckscher-Ohlin and the tax competition literature into a common theoretical framework. The model suggests that with increasing global integration, developing countries have strong incentives to shift public education expenditures towards lower education. In industrialized countries, on the other hand, globalization has an ambiguous effect on the composition of public education expenditures. We test and confirm these hypotheses with data on 86 countries over the 1999-2006 period.

Keywords: globalization, public education, composition of public spending

JEL Classification: F15, H42, H52

Suggested Citation

Baskaran, Thushyanthan and Hessami, Zohal, Globalization, Redistribution, and the Composition of Public Education Expenditures (January 2010). CESifo Working Paper Series No. 2917, Available at SSRN: https://ssrn.com/abstract=1545704

Thushyanthan Baskaran (Contact Author)

University of Goettingen (Göttingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Zohal Hessami

University of Konstanz, Department of Economics ( email )

Box 138
Konstanz, 78457
Germany

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