IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Education ties and investments abroad. Empirical evidence from the US and UK

  • Marina Murat


This paper analyses the impact of university student ties on the FDI of the US and UK into 167 countries during the period 1999-2010. University ties are measured by international students flows and alumni associations worldwide. Studies on transnational social networks suggest that effects should be higher on the FDI directed to the developing economies. The paper’s main findings are that international student flows and alumni associations abroad exert a positive influence on the FDI from the US and UK into the students’ home countries. More specifically, their influence is strong and significant in the group of developing countries. Results, similar for the US and UK, are robust to different regressors and econometric specifications.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by University of Modena and Reggio E., Dept. of Economics "Marco Biagi" in its series Center for Economic Research (RECent) with number 091.

in new window

Length: pages 29
Date of creation: Jul 2013
Date of revision:
Handle: RePEc:mod:recent:091
Contact details of provider: Web page:

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Peter Egger & Maximilian Von Ehrlich & Douglas R. Nelson, 2011. "Migration and Trade," CESifo Working Paper Series 3467, CESifo Group Munich.
  2. Melitz, Jacques & Toubal, Farid, 2012. "Native language, spoken language, translation and trade," SIRE Discussion Papers 2012-82, Scottish Institute for Research in Economics (SIRE).
  3. Felbermayr, Gabriel J. & Toubal, Farid, 2012. "Revisiting the Trade-Migration Nexus: Evidence from New OECD Data," World Development, Elsevier, vol. 40(5), pages 928-937.
  4. Roger White, 2007. "Immigrant-trade links, transplanted home bias and network effects," Applied Economics, Taylor & Francis Journals, vol. 39(7), pages 839-852.
  5. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
  6. José V. Blanes & Joan A. Martín-Montaner, 2006. "Migration Flows and Intra-Industry Trade Adjustments," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 567-584, October.
  7. Subhayu Bandyopadhyay & Cletus C. Coughlin & Howard J. Wall, 2007. "Ethnic networks and U.S. exports," Working Papers 2005-069, Federal Reserve Bank of St. Louis.
  8. James E. Rauch, 2001. "Business and Social Networks in International Trade," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1177-1203, December.
  9. Combes, Pierre-Philippe & Lafourcade, Miren & Mayer, Thierry, 2005. "The trade-creating effects of business and social networks: evidence from France," Journal of International Economics, Elsevier, vol. 66(1), pages 1-29, May.
  10. Michel Beine & Romain Noël & Lionel Ragot, 2013. "The determinants of international mobility of students," EconomiX Working Papers 2013-26, University of Paris West - Nanterre la Défense, EconomiX.
  11. Mark G. Herander & Luz A. Saavedra, 2005. "Exports and the Structure of Immigrant-Based Networks: The Role of Geographic Proximity," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 323-335, May.
  12. Frederic, DOCQUIER & Elisabetta, LODIGINI, 2006. "Skilled Migration and Business Networks," Discussion Papers (ECON - Département des Sciences Economiques) 2006036, Université catholique de Louvain, Département des Sciences Economiques.
  13. Bruce Sacerdote & David Marmaros, 2005. "How Do Friendships Form?," NBER Working Papers 11530, National Bureau of Economic Research, Inc.
  14. Donata Bessey, 2012. "International student migration to Germany," Empirical Economics, Springer, vol. 42(1), pages 345-361, February.
  15. Buch, Claudia M. & Kleinert, Jorn & Toubal, Farid, 2006. "Where enterprises lead, people follow? Links between migration and FDI in Germany," European Economic Review, Elsevier, vol. 50(8), pages 2017-2036, November.
  16. Sara Flisi & Marina Murat, 2010. "The hub continent? Immigrant networks, emigrant diasporas and FDI," Department of Economics 0628, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
  17. Arcidiacono, Peter & Khan, Shakeeb & Vigdor, Jacob L., 2011. "Representation versus assimilation: How do preferences in college admissions affect social interactions?," Journal of Public Economics, Elsevier, vol. 95(1-2), pages 1-15, February.
  18. Krieger, Tim & Haupt, Alexander M. & Lange, Thomas, 2011. "Competition for the International Pool of Talent: Education Policy and Student Mobility," Proceedings of the German Development Economics Conference, Berlin 2011 49, Verein für Socialpolitik, Research Committee Development Economics.
  19. Aleksynska, Mariya & Peri, Giovanni, 2012. "Isolating the Network Effect of Immigrants on Trade," IZA Discussion Papers 6941, Institute for the Study of Labor (IZA).
  20. Lauren Cohen & Andrea Frazzini & Christopher Malloy, 2007. "The Small World of Investing: Board Connections and Mutual Fund Returns," NBER Working Papers 13121, National Bureau of Economic Research, Inc.
  21. Baker, Sara & Mayer, Adalbert & Puller, Steven L., 2011. "Do more diverse environments increase the diversity of subsequent interaction? Evidence from random dorm assignment," Economics Letters, Elsevier, vol. 110(2), pages 110-112, February.
  22. Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
  23. Kahanec, Martin & Králiková, Renáta, 2011. "Pulls of International Student Mobility," IZA Discussion Papers 6233, Institute for the Study of Labor (IZA).
  24. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February.
  25. Wagner, Don & Head, Keith & Ries, John, 2002. "Immigration and the Trade of Provinces," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 507-25, December.
  26. Giovanni Peri & Francisco Requena, 2009. "The Trade Creation Effect of Immigrants: Evidence from the Remarkable Case of Spain," NBER Working Papers 15625, National Bureau of Economic Research, Inc.
  27. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-81, August.
  28. James A. Dunlevy, 2006. "The Influence of Corruption and Language on the Protrade Effect of Immigrants: Evidence from the American States," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 182-186, February.
  29. Mayer, Adalbert & Puller, Steven L., 2008. "The old boy (and girl) network: Social network formation on university campuses," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 329-347, February.
  30. Tadesse, Bedassa & White, Roger, 2008. "Do immigrants counter the effect of cultural distance on trade? Evidence from US state-level exports," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2304-2318, December.
  31. Richard Freeman, 2010. "Globalization of scientific and engineering talent: international mobility of students, workers, and ideas and the world economy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(5), pages 393-406.
  32. Sarah Y. Tong, 2005. "Ethnic Networks in FDI and the Impact of Institutional Development," Review of Development Economics, Wiley Blackwell, vol. 9(4), pages 563-580, November.
  33. Neri, Frank & Ville, Simon, 2008. "Social capital renewal and the academic performance of international students in Australia," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1515-1538, August.
  34. Gould, David M, 1994. "Immigrant Links to the Home Country: Empirical Implications for U.S. Bilateral Trade Flows," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 302-16, May.
  35. Kugler, Maurice & Rapoport, Hillel, 2007. "International labor and capital flows: Complements or substitutes?," Economics Letters, Elsevier, vol. 94(2), pages 155-162, February.
  36. Le, Thanh, 2010. "Are student flows a significant channel of R&D spillovers from the north to the south?," Economics Letters, Elsevier, vol. 107(3), pages 315-317, June.
  37. Sourafel Girma & Zhihao Yu, 2002. "The link between immigration and trade: Evidence from the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 115-130, March.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mod:recent:091. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.