Degree Matters: The Impact of a Leader’s Foreign Education on His Country’s Economic Development
Acknowledgement This thesis would not have been possible without the help from Professor Lincoln. His advice in refining my direction of study and the content of my work was invaluable. In addition, I would also like to acknowledge all the professors I have had during my time at CMC, for teaching me all the knowledge about economics and econometrics. Finally, I would like to thank my parents for their continuous love and support in everything I do and I want to thank my great friends, who made my past four years at CMC unforgettable. 5 1. Abstract I analyze the correlation between a nation leader's foreign education experience and their nation's GDP growth and economic freedom in African, Asian, and South American countries. There is a statistically significant correlation between a leader's foreign education and the country's GDP growth rate, especially in Africa. Data also shows that a leader's foreign education is positively correlated with his country's economic freedom. Despite the fact that the regressions can only demonstrate correlation as opposed to causation relationships among variables, further analysis of the results concludes that a leader's education and the country's development are reciprocal. The findings of this paper shine light on future policy directions for developing countries. 6 2. Introduction After World War II, the number of international students in developed countries studying at all levels grew rapidly as developing countries sought to educate their populations. By the end of the 20 th century, there were an estimated 1.5 million students studying internationally at the higher education level (Mazzarol, Soutar, & Seng, 2003). Many of these students returned to their home countries where they became important figures. The United States State Department estimates that nearly 300 world leaders, current and former, were educated at U.S. institutions (Wolfgang, 2012). However, it remains unanswered if a foreign degree has an impact on the ruling style of each leader and if so, to what extent. In late 2001, after the death of Kim Jong Il, Time Magazine published an article, predicting that Kim Jong Un, who was educated in Switzerland, would initiate reforms once he came to power. The article argued, " There may be reason for cautious hope… and the cause of hope begins with the fact that as a young man Kim lived in Bern, Switzerland, attending school there under an assumed name from 1998 to 2000 (Powell, 2011). " However, other …