Do the establishment of overseas branch campuses and financial collaboration promote human capital spillovers in host countries?

This study investigates the impact of overseas branch campuses (OBCs) and financial development on human capital spillover in host countries. The findings reveal that both the establishment of OBCs and their synergy with financial development significantly promote human capital spillovers. Financial development enhances the capacity of OBCs to provide high-quality education, allocate resources efficiently, and transfer knowledge, thereby strengthening talent cultivation. The synergy effect is not uniform across nations; it is most pronounced in high- and upper-middle-income countries, where mature financial markets and robust educational demand facilitate the effective integration of OBCs and financial resources. Conversely, in low- and lower-middle-income countries, weaker financial systems and limited resources reduce the magnitude of the effect. Additionally, infrastructure quality shapes the synergy’s effectiveness: in countries with high infrastructure levels, the combined influence of OBCs and financial development strongly boosts human capital spillover; in low infrastructure countries, the effect remains positive but less pronounced; and in medium infrastructure countries, the impact is minimal. These results highlight the importance of aligning educational expansion with financial and infrastructural development to maximize human capital gains, providing valuable insights for policymakers and educational planners aiming to enhance national human capital through international collaboration and investment.