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Out of sight, not out of mind. Education networks and international trade

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  • Marina Murat

Abstract

This paper investigates the impact of international students on the UK bilateral trade with 167 partner economies during 1999-2009. The base hypothesis is that transnational social networks lower the invisible trade barriers existing between countries. University students typically develop ties of friendship and trust that can last for decades after graduation and may evolve into economic and business ties. I find robust evidence that education networks boost the bilateral trade between the UK and the home countries of graduates and students. At a more disaggregated level, the strongest effects on exports and imports derive from the networks linked to the Middle East and to the new member countries of the European Union.

Suggested Citation

  • Marina Murat, 2012. "Out of sight, not out of mind. Education networks and international trade," Center for Economic Research (RECent) 087, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    • Handle: RePEc:mod:recent:087
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    2. 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".
    3. 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".
    4. 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.
    5. 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".
    6. 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.
    7. 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.
    8. 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.
    9. Bataka, Hodabalo, 2024. "Global value chains participation and gender inequalities in Sub-Saharan Africa: Importance of women education," International Economics, Elsevier, vol. 178(C).
    10. 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".
    11. 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.
    12. 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.
    13. Wang, Hao & Tan, Shuting & Han, Yonghui, 2025. "Beyond education: International student inflow and outbound cross-border mergers and acquisitions," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 101(C).
    14. Marina Murat, 2017. "International Students and Investments Abroad," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 17(1), pages 1-33, March.
    15. Fan, Haichao & Hu, Xingcun & Lin, Faqin & Liu, Mengxun, 2025. "Cultural origin and international trade," Journal of Economic Behavior & Organization, Elsevier, vol. 229(C).

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    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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