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International Education and Economic Growth

Author

Listed:
  • Bergerhoff, Jan

    (University of Bonn)

  • Borghans, Lex

    (Maastricht University)

  • Seegers, Philipp K.

    (Maastricht University)

  • van Veen, Tom

    (Maastricht University)

Abstract

In recent years international student mobility increased. While net hosting countries are in a better position to win highly educated students for their labour force, they face the additional cost of providing the education. In much of continental Europe these costs are not levied on students, but are borne by the national tax payers, making them an active topic of debate. Borrowing some fundamental equations from the Lucas growth model, this paper addresses the question whether countries benefit from educating international students. We derive conditions under which international education has a positive effect on economic growth, overall and in each specific country. Based on empirically motivated parameter values to calibrate our two-country model we find that international student mobility increases steady state growth for both countries on average by 0.013 percentage points. A small country that is favoured by the inflows of a larger country could experience an extra growth of 0.049 percentage points. The benefits from international education increase when a country tunes its education and migration policy.

Suggested Citation

  • Bergerhoff, Jan & Borghans, Lex & Seegers, Philipp K. & van Veen, Tom, 2013. "International Education and Economic Growth," IZA Discussion Papers 7354, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7354
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. On the benefits of an international education
      by Economic Logician in Economic Logic on 2013-06-03 19:59:00

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    Cited by:

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    2. Stefan Cristian Ciucu & Raluca Dragoescu, 2014. "The Influence of Education on Economic Growth," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 2(1), pages 243-257, May.
    3. Perna, Laura W. & Orosz, Kata & Jumakulov, Zakir, 2015. "Understanding the human capital benefits of a government-funded international scholarship program: An exploration of Kazakhstan's Bolashak program," International Journal of Educational Development, Elsevier, vol. 40(C), pages 85-97.
    4. Akira Shimada, 2023. "Can a host country increase human capital by accepting study migrants?," International Economics and Economic Policy, Springer, vol. 20(4), pages 635-650, October.
    5. Mamta B Chowdhury, 2022. "Internationalisation of education and its effect on economic growth and development," The World Economy, Wiley Blackwell, vol. 45(1), pages 200-219, January.
    6. Poot, Jacques & Roskruge, Matthew, 2013. "Internationalisation of Education and Returns in the Labour Market," IZA Discussion Papers 7696, Institute of Labor Economics (IZA).
    7. Ghulam Akhmat & Khalid Zaman & Tan Shukui & Tauseef Ahmed, 2014. "RETRACTED ARTICLE: Educational reforms and internationalization of universities: evidence from major regions of the world," Scientometrics, Springer;Akadémiai Kiadó, vol. 98(3), pages 2185-2205, March.

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    More about this item

    Keywords

    economic growth; international education; economics of education;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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