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Native Students and the Gains from Exporting Higher Education: Evidence from Australia

Author

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  • Zhou, Li

    () (University of Alberta, Department of Economics)

Abstract

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.

Suggested Citation

  • Zhou, Li, 2012. "Native Students and the Gains from Exporting Higher Education: Evidence from Australia," Working Papers 2012-3, University of Alberta, Department of Economics.
  • Handle: RePEc:ris:albaec:2012_003
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    File URL: https://sites.ualberta.ca/~econwps/2012/wp2012-03.pdf
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    References listed on IDEAS

    as
    1. Findlay, Ronald & Kierzkowski, Henryk, 1983. "International Trade and Human Capital: A Simple General Equilibrium Model," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 957-978, December.
    2. Groen, Jeffrey A. & White, Michelle J., 2004. "In-state versus out-of-state students: the divergence of interest between public universities and state governments," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1793-1814, August.
    3. David Card, 2009. "Immigration and Inequality," CReAM Discussion Paper Series 0907, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    4. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    5. Ehrenberg, Ronald G & Rees, Daniel I & Brewer, Dominic J, 1993. "Institutional Responses to Increased External Support for Graduate Students," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 671-682, November.
    6. Ehrenberg, R.G.Ronald G., 2004. "Econometric studies of higher education," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 19-37.
    7. Wolfgang F. Stolper & Paul A. Samuelson, 1941. "Protection and Real Wages," Review of Economic Studies, Oxford University Press, vol. 9(1), pages 58-73.
    8. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-391, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    higher education; gains from trade; native students;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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