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Paying out and crowding out? The globalization of higher education

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  • Stephen Machin
  • Richard Murphy

Abstract

Increased globalization of higher education has occurred as more students from across the world now enrol in universities abroad for their post-school education. We study the consequences of having more foreign students in one of the world’s biggest receivers of international students, the UK’s higher educational system. To do so, we estimate the impact of growing numbers of international students on the number of domestic students. Using rich administrative data, we find no evidence of crowd out of domestic undergraduates whose enrolment numbers are regulated by maximum quotas. For domestic postgraduates, who do not face such quotas, there is evidence of crowd in. We establish causality of this relationship by employing two empirical strategies to predict exogenous international student growth. The first uses shift-share instruments based on historical patterns of student enrolment from countries attending specific university departments. The second is based on the fast growth in enrolment of Chinese students which was facilitated by changes in visa regulations in combination with distinct subject of study preferences.

Suggested Citation

  • Stephen Machin & Richard Murphy, 2017. "Paying out and crowding out? The globalization of higher education," Journal of Economic Geography, Oxford University Press, vol. 17(5), pages 1075-1110.
  • Handle: RePEc:oup:jecgeo:v:17:y:2017:i:5:p:1075-1110.
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    Cited by:

    1. John Bound & Breno Braga & Gaurav Khanna & Sarah Turner, 2016. "A Passage to America: University Funding and International Students," NBER Working Papers 22981, National Bureau of Economic Research, Inc.
    2. Michel Beine & Marco Delogu & Lionel Ragot, 2017. "Understanding the Impact of Tuition Fees in Foreign Education: the Case of the UK," CREA Discussion Paper Series 17-15, Center for Research in Economic Analysis, University of Luxembourg.
    3. Jaeger, David A & Ruist, Joakim & Stuhler, Jan, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    4. repec:eee:pubeco:v:156:y:2017:i:c:p:170-184 is not listed on IDEAS

    More about this item

    Keywords

    Student enrolment; foreign students;

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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