@TechReport{iza:izadps:dp1863,
            	author={Egger, Hartmut and Egger, Peter and Falkinger, Josef and Grossmann, Volker},
            	title={International Capital Market Integration, Educational Choice and Economic Growth},
            	year={2005},
	month={Nov},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1863},
            	url={https://www.iza.org/publications/dp1863},
	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 non-compulsory 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.},
	keywords={capital mobility;educational choice;capital-skill complementarity;education policy;economic growth;wage income inequality},
            }