Native Students and the Gains from Exporting Higher Education: Evidence from Australia
This paper proposes a general equilibrium model with non-profit publicly subsidized universities to show that native applicants do not have to lose from exporting higher education, as suggested by standard trade models. The gains from exporting higher education that initially accrue to universities will be redistributed to natives through increased investment in research and teaching. With Australian university-level data from 2001 to 2007, the empirical investigation identifies the impact of exporting higher education on native enrollment using the instrumental variable approach: the enrollment of one more foreign student leads to the enrollment of about 0.75 more Australian native students.
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