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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)

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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.

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File URL: http://www.economics.ualberta.ca/~/media/economics/FacultyAndStaff/WPs/WP2012-03-Zhou
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Bibliographic Info

Paper provided by University of Alberta, Department of Economics in its series Working Papers with number 2012-3.

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Length: 50 pages
Date of creation: 01 Jan 2012
Date of revision:
Handle: RePEc:ris:albaec:2012_003

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Keywords: higher education; gains from trade; native students;

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  1. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 7(4), pages 371-91, October.
  2. Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0151, National Bureau of Economic Research, Inc.
  3. Ehrenberg, R.G.Ronald G., 2004. "Econometric studies of higher education," Journal of Econometrics, Elsevier, Elsevier, vol. 121(1-2), pages 19-37.
  4. David Card, 2009. "Immigration and Inequality," NBER Working Papers 14683, National Bureau of Economic Research, Inc.
  5. Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 91(6), pages 957-78, December.
  6. Groen, Jeffrey A. & White, Michelle J., 2004. "In-state versus out-of-state students: the divergence of interest between public universities and state governments," Journal of Public Economics, Elsevier, Elsevier, vol. 88(9-10), pages 1793-1814, August.
  7. Ehrenberg, Ronald G & Rees, Daniel I & Brewer, Dominic J, 1993. "Institutional Responses to Increased External Support for Graduate Students," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 671-82, November.
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