Public Education Spending in a Globalized World: Is there a Shift in Priorities Across Educational Stages?

Thushyanthan Baskaran and Zohal Hessami

No 2011-42, Working Paper Series of the Department of Economics, University of Konstanz from Department of Economics, University of Konstanz

Abstract: This paper studies the effect of globalization on public expenditures allocated to different stages of education. First, we derive theoretically that globalization’s influence on education expenditures depends on the type of government. For benevolent governments, the model suggests that expenditures for higher education will increase and expenditures for basic education will decline with deepening economic integration. For Leviathan governments, on the other hand, the effects of globalization on public education spending cannot be unambiguously predicted. In the second part of the paper, we empirically analyze globalization’s influence on primary, secondary, and tertiary education expenditures with panel data covering 104 countries over the 1992 - 2006 period. The results indicate that globalization has led in both industrialized and developing countries to more spending for secondary and tertiary and to less spending for primary education.

Keywords: Globalization; economic integration; public education; education expenditures (search for similar items in EconPapers)
JEL-codes: F15 H42 H52 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2011-10-24
New Economics Papers: this item is included in nep-edu and nep-lab
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