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Investment Flows, Talent Inflows: Unraveling the Spatial Spillover Effects of FDI on College Students’ City Choice

Author

Listed:
  • Meng Cai

    (Nanjing University)

  • Jianguo Xie

    (Nanjing University)

Abstract

This paper examines the relationship between foreign direct investment and a city’s ability to attract college students from the perspective of spatial spillovers. Using data from Chinese cities spanning 2011–2019, we employ spatial econometric modeling to analyze the spatial spillover effects of foreign direct investment (FDI) on improving cities’ ability to attract college students. Our findings indicate significant spatial dependence for both FDI and the ability to attract college students. FDI in neighboring cities significantly enhances the focal city’s capacity to attract students. Capital stock, technology, and consumption emerge as the primary mechanisms driving this effect. The study offers policy implications on how cities can effectively harness the spatial spillover effects of FDI to improve their attractiveness to students amid intense competition for talent.

Suggested Citation

  • Meng Cai & Jianguo Xie, 2025. "Investment Flows, Talent Inflows: Unraveling the Spatial Spillover Effects of FDI on College Students’ City Choice," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 9847-9872, June.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:2:d:10.1007_s13132-024-02288-y
    DOI: 10.1007/s13132-024-02288-y
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    Keywords

    College students; Talent policy; Foreign direct investment; Economic development; Spatial spillover effect;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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