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| Megumi Mochida |
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| ''Educational loan and human capital accumulation in a small open economy'' |
| ( 2004, Vol. 6 No.16 ) |
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| 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. |
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| Keywords: Capital market imperfection |
JEL: F4 - Macroeconomic Aspects of International Trade and Finance: General
O1 - Economic Development: General |
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| Manuscript Received : Sep 29 2004 | | Manuscript Accepted : Oct 12 2004 |
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