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Out of Sight, Not Out of Mind. Education Networks and International Trade

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  • Murat, Marina

Abstract

University students typically develop between them long-lasting ties of friendship and trust, as well as an attachment to their university. If they are foreign students, they also form a bond to their country of study. This paper investigates the impact of university ties on the UK’s trade with 167 countries during 1999–2009. I find robust evidence that education network ties boost the UK’s bilateral trade flows. Specifically, the impact of networks is stronger on trade between the United Kingdom and countries with dissimilar institutions and culture, and particularly with post-communist economies. Results are robust to different econometric specifications and regressors.

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  • Murat, Marina, 2014. "Out of Sight, Not Out of Mind. Education Networks and International Trade," World Development, Elsevier, vol. 58(C), pages 53-66.
    • Handle: RePEc:eee:wdevel:v:58:y:2014:i:c:p:53-66
    DOI: 10.1016/j.worlddev.2013.12.013
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    Cited by:

    1. Marina Murat, 2014. "Soft, hard or smart power? International students and investments abroad," Center for Economic Research (RECent) 107, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    2. Marina Murat & María Luisa Recalde & Pedro Gabriel Degiovanni, 2015. "The education networks of Latin America. Effects on trade during and after the cold war," Center for Economic Research (RECent) 113, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    3. Wei, Hao & Yuan, Ran & Zhao, Laixun, 2020. "International talent inflow and R&D investment: Firm-level evidence from China," Economic Modelling, Elsevier, vol. 89(C), pages 32-42.
    4. Marina Murat & María Luisa Recalde & Pedro Gabriel Degiovanni, 2015. "The education networks of Latin America. Effects on trade during and after the cold war," Department of Economics 0056, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    5. Junbing Xu & Zhongmei Wei & Haitang Yao, 2022. "Can international students help enhance China's urban innovation?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2421-2433, September.
    6. Fassio, Claudio & Igna, Ioana, 2021. "Foreign graduates in Sweden. The role of high tech sectors, STEM disciplines and cultural distance," Papers in Innovation Studies 2022/2, Lund University, CIRCLE - Centre for Innovation Research.
    7. Fabian Koenings & Tina Haussen & Stefan Toepfer & Silke Uebelmesser, 2021. "Coming to stay or to go? Stay intention and involved uncertainty of international students," Journal of Regional Science, Wiley Blackwell, vol. 61(2), pages 329-351, March.
    8. Murat Marina, 2017. "International Students and Investments Abroad," Global Economy Journal, De Gruyter, vol. 17(1), pages 1-33, March.
    9. Marina Murat, 2014. "Soft, hard or smart power? International students and investments abroad," Department of Economics 0043, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    10. Marina Murat, 2018. "Foreign education and international trade: empirical evidence from selected Latin American countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 32(1), pages 84-103, January.
    11. Magnus Lodefalk, 2016. "Temporary expats for exports: micro-level evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(4), pages 733-772, November.

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    More about this item

    Keywords

    bilateral trade; international students; alumni; higher education; networks; UK;
    All these keywords.

    JEL classification:

    • 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
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F20 - International Economics - - International Factor Movements and International Business - - - General

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