IDEAS home Printed from https://ideas.repec.org/a/eee/ecoedu/v29y2010i4p553-565.html

Does price matter? Overseas students in UK higher education

Author

Listed:
  • Soo, Kwok Tong
  • Elliott, Caroline

Abstract

This paper explores the determinants of the choice of UK universities by overseas undergraduate applicants. We use data on overseas applicants in Business Studies and Engineering from 2002 to 2007, to 97 UK universities. Estimating using a Hausman-Taylor model to control for the possible correlation between our explanatory variables and unobservable university-level effects, we find that the fees charged may influence the application decision of some students, but that any relationship between levels of fees and applications is non-linear. The quality of education provided is positively and significantly related to the number of applications. Proximity to London and the existing popularity of a university among home applicants, are also significant predictors of university applications.

Suggested Citation

  • Soo, Kwok Tong & Elliott, Caroline, 2010. "Does price matter? Overseas students in UK higher education," Economics of Education Review, Elsevier, vol. 29(4), pages 553-565, August.
    • Handle: RePEc:eee:ecoedu:v:29:y:2010:i:4:p:553-565
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0272-7757(09)00140-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LLC, vol. 3(1), pages 1-31, March.
    2. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    3. Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-1398, November.
    4. Donald E. Heller, 1997. "Student Price Response in Higher Education," The Journal of Higher Education, Taylor & Francis Journals, vol. 68(6), pages 624-659, November.
    5. Jerry Hausman, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    6. Milgrom, Paul & Roberts, John, 1986. "Price and Advertising Signals of Product Quality," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 796-821, August.
    7. Fluet, Claude & Garella, Paolo G., 2002. "Advertising and prices as signals of quality in a regime of price rivalry," International Journal of Industrial Organization, Elsevier, vol. 20(7), pages 907-930, September.
    8. Baltagi, Badi H. & Bresson, Georges & Pirotte, Alain, 2003. "Fixed effects, random effects or Hausman-Taylor?: A pretest estimator," Economics Letters, Elsevier, vol. 79(3), pages 361-369, June.
    9. Caves, Richard E. & Greene, David P., 1996. "Brands' quality levels, prices, and advertising outlays: empirical evidence on signals and information costs," International Journal of Industrial Organization, Elsevier, vol. 14(1), pages 29-52.
    10. Andrew Abbott & Derek Leslie, 2004. "Recent Trends in Higher Education Applications and Acceptances," Education Economics, Taylor & Francis Journals, vol. 12(1), pages 67-86.
    11. Ann Bourke, 2000. "A Model of the Determinants of International Trade in Higher Education," The Service Industries Journal, Taylor & Francis Journals, vol. 20(1), pages 110-138, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:lan:wpaper:3335 is not listed on IDEAS
    2. Lenton, Pamela, 2015. "Determining student satisfaction: An economic analysis of the National Student Survey," Economics of Education Review, Elsevier, vol. 47(C), pages 118-127.
    3. Singleton, Carl & Bell, Adrian R. & Chung, Andy & Reade, J. James & Urquhart, Andrew, 2024. "Scoring goals: The impact of English Premier League football teams on local university admissions," Economics Letters, Elsevier, vol. 244(C).
    4. Arnaud Chevalier & Xiaoxuan Jia, 2016. "Subject-Specific League Tables and Students' Application Decisions," Manchester School, University of Manchester, vol. 84(5), pages 600-620, September.
    5. Gibbons, Stephen & Neumayer, Eric & Perkins, Richard, 2015. "Student satisfaction, league tables and university applications: Evidence from Britain," Economics of Education Review, Elsevier, vol. 48(C), pages 148-164.
    6. Shaker, Saber Adly, 2012. "أثر العوامل المؤسسية على تنافسية خدمات التعليم العالي [The Impact of Institutional Factors on The Higher Education Competitiveness]," MPRA Paper 82412, University Library of Munich, Germany.
    7. Stijn Broecke, 2015. "University rankings: do they matter in the UK?," Education Economics, Taylor & Francis Journals, vol. 23(2), pages 137-161, April.
    8. Elliott, Caroline & Soo, Kwok Tong, 2013. "The international market for MBA qualifications: The relationship between tuition fees and applications," Economics of Education Review, Elsevier, vol. 34(C), pages 162-174.
    9. Andersson, Roland & Nabavi Larijani, Pardis & Wilhelmsson, Mats, 2013. "The impact of vocational education and training on income in Sweden," Working Paper Series 13/4, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    10. Rhys J. Williams, 2022. "The effect of casual teaching on student satisfaction: evidence from the UK," Education Economics, Taylor & Francis Journals, vol. 30(1), pages 91-111, January.
    11. Stephen Gibbons & Eric Neumayer & Richard Perkins, 2013. "Student Satisfaction, League Tables and University Applications," SERC Discussion Papers 0142, Centre for Economic Performance, LSE.
    12. Philip Wales, 2013. "Access All Areas? The Impact of Fees and Background on Student Demand for Postgraduate Higher Education in the UK," SERC Discussion Papers 0128, Centre for Economic Performance, LSE.
    13. Gabriele Marconi, 2013. "Rankings, accreditations, and international exchange students," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-22, December.
    14. K T Soo, 2009. "Estimating the production function of university students," Working Papers 600466, Lancaster University Management School, Economics Department.
    15. Caroline Elliott & Kwok Tong Soo, 2012. "The International Market for MBA Qualifications," Working Papers 24284581, Lancaster University Management School, Economics Department.
    16. Zheng, Ping, 2014. "Antecedents to international student inflows to UK higher education: A comparative analysis," Journal of Business Research, Elsevier, vol. 67(2), pages 136-143.
    17. Daniel Weimar & Markus Schauberger, 2018. "The impact of sporting success on student enrollment," Journal of Business Economics, Springer, vol. 88(6), pages 731-764, August.
    18. Wales, Philip, 2013. "Access all areas? The impact of fees and background on student demand for postgraduate higher education in the UK," LSE Research Online Documents on Economics 57846, London School of Economics and Political Science, LSE Library.
    19. Harazneh Ibrahim & Al-Tall Raad Meshall & Al-Zyoud Mohammad Fahmi & Abubakar A. Mohammed, 2018. "Motivational factors for educational tourism: marketing insights," Management & Marketing, Sciendo, vol. 13(1), pages 796-811, March.
    20. Caruso, Raul & de Wit, Hans, 2013. "Determinants of Mobility of Students in Europe: a preliminary quantitative study," MPRA Paper 49808, University Library of Munich, Germany.
    21. Balmer, John M.T. & Mahmoud, Rudiana & Chen, Weifeng, 2020. "Impact of multilateral place dimensions on corporate brand attractiveness and identification in higher education: Business school insights," Journal of Business Research, Elsevier, vol. 116(C), pages 628-641.
    22. Feifei Yang & Rajenthyran Ayavoo & Norazlin Ab Aziz, 2023. "Exploring Students’ Push and Pull Motivations to Visit Rural Educational Tourism Sites in China," Sustainability, MDPI, vol. 15(20), pages 1-23, October.
    23. repec:lan:wpaper:3056 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mitze, Timo & Alecke, Björn & Untiedt, Gerhard, 2008. "Trade, FDI and Cross-Variable Linkages: A German (Macro-)Regional Perspective," MPRA Paper 12245, University Library of Munich, Germany.
    2. Beckmann, Rainer, 2007. "Profitability of Western European banking systems: panel evidence on structural and cyclical determinants," Discussion Paper Series 2: Banking and Financial Studies 2007,17, Deutsche Bundesbank.
    3. O'Brien, Raymond & Patacchini, Eleonora, 2003. "Testing the exogeneity assumption in panel data models with "non classical" disturbances," Discussion Paper Series In Economics And Econometrics 0302, Economics Division, School of Social Sciences, University of Southampton.
    4. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    5. Ebrahim Abbas Abdullah Abbas Amer & Zhang Xiuwu & Ebrahim Mohammed Ali Meyad & Mohammed Muneer Alareqi & SAMEER. M. H. BATHER & Amr Abdelwahed, 2025. "Nexus between renewable-disaggregated non-renewable energy consumption and economic growth in GCC countries: a Cobb-Douglas production function analysis," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-18, December.
    6. Shahriar Kabir & Harry Bloch & Ruhul A Salim, 2018. "Global Financial Crisis And Southeast Asian Trade Performance: Empirical Evidence," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 30(2), pages 114-144, July.
    7. Bertoldi, Paolo & Mosconi, Rocco, 2020. "Do energy efficiency policies save energy? A new approach based on energy policy indicators (in the EU Member States)," Energy Policy, Elsevier, vol. 139(C).
    8. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
    9. Jiménez-Sotelo, Renzo A., 2023. "La influencia del mercado de deuda pública interna en el desarrollo financiero: evidencia de 52 países en 1990-2020," El Trimestre Económico, Fondo de Cultura Económica, vol. 90(359), pages 773-804, julio-sep.
    10. Harry Patrinos & Chris Sakellariou, 2005. "Schooling and Labor Market Impacts of a Natural Policy Experiment," LABOUR, CEIS, vol. 19(4), pages 705-719, December.
    11. Jones A.M & Rice N, 2009. "Econometric Evaluation of Health Policies," Health, Econometrics and Data Group (HEDG) Working Papers 09/09, HEDG, c/o Department of Economics, University of York.
    12. Dalila Chenaf-Nicet, 2020. "Dynamics of Structural Change in a Globalized World: What Is the Role Played by Institutions in the Case of Sub-Saharan African Countries?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 998-1037, September.
    13. Muhammad Azam Khan, 2025. "The impact of migrant remittances on economic development: empirical evidence from the developing world," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 27(1), pages 323-351, April.
    14. Mosfequs Salehin & Robert Breunig, 2012. "The immigrant wage gap and assimilation in Australia: the impact of unobserved heterogeneity," CEPR Discussion Papers 661, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    15. Nikolaev, V. & van Lent, L.A.G.M., 2005. "The Endogeneity Bias in the Relation Between Cost-of-Debt Capital and Corporate Disclosure Policy," Other publications TiSEM 5960a342-0adc-4f85-bf87-2, Tilburg University, School of Economics and Management.
    16. Patrick Paul Walsh & Franco Mariuzzo, 2005. "Embedding Consumer Taste for Location into a Structural Model of Equilibrium," Trinity Economics Papers tep3, Trinity College Dublin, Department of Economics.
    17. Barton, Jan & Waymire, Gregory, 2004. "Investor protection under unregulated financial reporting," Journal of Accounting and Economics, Elsevier, vol. 38(1), pages 65-116, December.
    18. Rui Hao, 2011. "Sources of income differences across Chinese provinces during the reform period: a development accounting exercise," CERDI Working papers halshs-00557001, HAL.
    19. Maria Elena Bontempi & Silvia Giannini & Roberto Golinelli, 2005. "Corporate Tax Reforms and Financial Choices: An Empirical Analysis," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 64(2-3), pages 271-294, November.
    20. Bostian, Moriah B. & Dupraz, Pierre & Minviel, Jean Joseph, 2015. "Production effects of wetland conservation: evidence from France," Working Papers 210465, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:29:y:2010:i:4:p:553-565. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/econedurev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.