In general, my results show that globalization leads to higher education. This result has some policy implications. In my paper the result shows that whether a country is a WTO member does not influence its average years of schooling. But when China joined WTO in 2001, completion of high school education has increased in China since early 1990s (Liu, 2017). In addition, trade policy can change educational attainment through these three ways:
return to education, opportunity cost of schooling and supply of education resources (Liu, 2017). Moreover, as globalization continues to expand, more and more countries are already integrated into world markets, my study will give support for the question about what types of exports are most beneficial for human capital accumulation. This is very important for different countries with different trade structure. Because countries’ trade structure is more focused on skill-intensive goods and countries’ trade structure is more focused on low-skill-intensive goods have different effect on education. Human capital is a key factor of economic growth, thus countries need to rethink the relevant policy that how best to engage in trade with the rest of the world (Blanchard and Olney, 2017).
7 Conclusion
In this paper, I demonstrate that educational attainment responds to changes in glob-alization, especially reduction in tariff and increasing total exports, and thus offer insight into how investment in human capital responds to changing patterns of trade structure and how globalization responds to different education level. I construct a panel data set that spans 63 countries and 47 years and adopt OLS model. My results show that MFN weighted average tariff decreases by 1 %, which means the country is more globalized, average years of schooling will increase by 0.00894 years. Also, my results indicate that educational attain-ment decreases with agriculture exports, low-skill-intensive manufactured exports and skilled manufactured exports. Moreover, globalization has different effect on different stages of
edu-cation level. Moreover, whether a country is a WTO member does not influence eduedu-cational attainment.
There are some suggestions for future studies. First, in my paper I use quantity-based measures of educational attainment (years of schooling); researchers could use both quantity-based and quality-quantity-based (test scores) measures of educational achievement. Another sug-gestion is to use different measures of globalization. In my paper, I use total exports and average tariff. There are different measurements such as migration and private cross-border investment. Moreover, When facing trade liberalization, countries seem to increase average years of schooling and then people’s income will also increase due to increasing in educa-tional attainment. In Card and Krueger’s (1992) paper, they find that quality of schooling influences income. More specifically, people who were educated with higher-quality schools have a higher return to additional years of schooling and also rates of return are also higher for individuals from states with better educated teachers. Thus future research can find how does globalization affect income and how education affect income when facing trade liberalizaion.
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Table 6: Impact of globalization on schooling by countries with different exports structure agriculture unskilled manufacturing skilled manufacturing
VARIABLES avesch avesch avesch
govedu 0.0815 0.173* 0.0790
(0.0540) (0.0951) (0.0699)
exGDP 0.00271 0.0303* -0.0168*
(0.01000) (0.0158) (0.00893)
agrEXP 0.00366 0.00874 0.0251
(0.00476) (0.0174) (0.0333)
lowskmanEXP -0.0235* -0.00960 0.0301
(0.0119) (0.00935) (0.0218)
skmanEXP 0.00261 0.0222** -0.0105
(0.00800) (0.0109) (0.0125)
avetariff -0.0222 -0.0196 -0.0465***
(0.0149) (0.0133) (0.0109)
gloidz 0.0646*** 0.0344** 0.119***
(0.0132) (0.0153) (0.0131)
GDP -1.32e-05 4.45e-05*** 2.29e-05*
(9.17e-06) (1.50e-05) (1.28e-05)
Constant 4.271*** 4.081*** 1.969
(0.902) (0.975) (1.469)
Year FE Y Y Y
Observations 138 120 98
R-squared 0.493 0.674 0.846
Number of newcountry 11 10 7
Standard errors in parentheses
*** p<0.01, ** p<0.05, * p<0.1
column (1) shows high agriculture exports countries; column (2) shows high low skill manufacture exports countries; column (3) shows high skill manufacture exports countries;