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Soft, hard or smart power? International students and investments abroad

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  • Marina Murat

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Abstract

This paper analyses the impact of education networks on the FDI from the United States and United Kingdom to 167 countries during 1999 - 2011. Proxies of networks are i nternational students in the US and UK and alumni associations abroad. Results show that international students boost the British FDI to their home countries, while their inf luence on American FDI is weak , except for students from developing economies and for international students who attended university during the Cold War. Alumni associations have a substantial impact on both American and British FDI , but especially on the latter. The stronger impact of education networks on British FDI is partly related to the different political and economic role s played by the US and UK on the world stage , and to their different use of soft and hard power. Results are robust to different econometric specifications.

Suggested Citation

  • 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".
  • Handle: RePEc:mod:recent:107
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    More about this item

    Keywords

    international students; alumni; bilateral FDI; education networks;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • 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

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