This research project studied the expansion of education in developing countries in 1960–2000, relating it to economic and institutional factors. In particular, the research attempted to identify the kinds of policies consistent with enhancing the demand for education.
The research was based on multivariate regression analysis with fixed effects using cross-country data from the World Bank’s World Development Indicators database and provincial data on China from the China Statistical Yearbook for 1986–2002. The initial analysis found that educational attainment around the world has increased at a pace exceeding income growth. This finding prompted research into the causes of expansion in education, which led to consideration—both in the cross-country framework and across provinces in China—of the effect of economic openness. This analysis produced two main findings.
1.Increased educational attainment was related to an economy’s degree of openness.
2.Economic openness apparently enhanced the demand for skilled labor as a result of technological spillovers, thus generating demand for education.
The findings suggested that improvements in trade policies and aspects of governance related to openness could be expected to lead to advances in schooling. The research contributed to the debate on how best to achieve the Millennium Development Goals in education.
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