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

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  • Marina Murat

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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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    Cited by:

    1. 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".
    2. repec:bpj:glecon:v:17:y:2017:i:1:p:33:n:5 is not listed on IDEAS
    3. 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".
    4. 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.
    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," Center for Economic Research (RECent) 113, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    6. 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".

    More about this item

    Keywords

    international students; higher education; networks; bilateral trade;

    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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