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International Students and Investments Abroad

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  • Marina Murat

    (Department of Economics, University of Modena and Reggio Emilia, Viale Berengario 51 Modena, Modena, Modena 41121, Italy)

Abstract

This paper analyses the impact of education networks on the FDI from the United States and United Kingdom to 167 countries during 1999–2011. Proxies of networks are international students in the United States and United Kingdom and American and British alumni associations abroad. Results show that international students boost British FDI, while their influence on American FDI is weaker and restricted to non-OECD economies. International alumni associations strongly attract both American and British FDI to the alumni home countries. The different impact of education networks on American and British FDI is partly related to the two countries’ use of soft and hard power. The pro-FDI effects of student ties are disrupted by the use of hard power.

Suggested Citation

  • Marina Murat, 2017. "International Students and Investments Abroad," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(1), pages 1-33, March.
    • Handle: RePEc:wsi:gejxxx:v:17:y:2017:i:01:n:gej-2016-0037
    DOI: 10.1515/GEJ-2016-0037
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    More about this item

    Keywords

    international students; alumni; bilateral FDI; education networks;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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