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Native Students and the Gains from Exporting Higher Education: Evidence from Australia

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  • Zhou, Li

    (University of Alberta, Department of Economics)

Abstract

This paper proposes a general equilibrium model with non-profit publicly subsidized universities to show that native applicants do not have to lose from exporting higher education, as suggested by standard trade models. The gains from exporting higher education that initially accrue to universities will be redistributed to natives through increased investment in research and teaching. With Australian university-level data from 2001 to 2007, the empirical investigation identifies the impact of exporting higher education on native enrollment using the instrumental variable approach: the enrollment of one more foreign student leads to the enrollment of about 0.75 more Australian native students.

Suggested Citation

  • Zhou, Li, 2012. "Native Students and the Gains from Exporting Higher Education: Evidence from Australia," Working Papers 2012-3, University of Alberta, Department of Economics.
    • Handle: RePEc:ris:albaec:2012_003
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    File URL: https://sites.ualberta.ca/~econwps/2012/wp2012-03.pdf
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    References listed on IDEAS

    as
    1. Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-978, December.
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    More about this item

    Keywords

    higher education; gains from trade; native students;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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