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Educational loan and human capital accumulation in a small open economy

Author

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  • Megumi Mochida

    (Graduate School of Economics, Osaka University)

Abstract

Cartiglia (1997) shows that trade increases human capital investment in developing countries unless there are credit markets for individuals. In this paper, when households can borrow the education cost from a market, a trade-induced decrease in the skilled wage leads to less human capital investment in developing countries.

Suggested Citation

  • Megumi Mochida, 2004. "Educational loan and human capital accumulation in a small open economy," Economics Bulletin, AccessEcon, vol. 6(16), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-04f40005
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Capital market imperfection;

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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