|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/19094
|
| | |
| Title: | | International capital market integration, educational choice and economic growth  |
| Authors: | | Egger, Hartmut Egger, Peter Falkinger, Josef Grossmann, Volker |
| Issue Date: | | 2005 |
| Series/Report no.: | | CESifo working papers 1630 |
| Abstract: | | 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 noncompulsory 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. |
| Subjects: | | capital mobility capital-skill complementarity educational choice education policy economic growth wage income inequality |
| JEL: | | O10 J24 H52 F20 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/19094
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|