The Economics of International Student and Scholar Mobility: Directions for Research

Abstract

International trade in higher education services in the form of international student mobility has increased sharply since the 1960s and especially from Eastern Europe and Central Asia since the fall of the Soviet Union. Many international students, especially those with graduate degrees, stay on in the host country after graduation. Although their impact on labor markets has been investigated by economists, geographers, and regional scientists in recent years, most studies on international students focus on education and spatial issues, with very little economic analysis. Furthermore, the application of a trade in services framework to international student mobility is virtually nonexistent. Four areas of research have emerged that need further investigation, particularly for the Europe and Central Asia region. First is the research gap on host and source country pull and push factors affecting the demand and supply of international students. Second, there is little or no understanding of the impact of foreign direct investment in higher education services, both through the establishment of branch campuses as well as direct investment by multinationals in universities. Third, there is virtually no study on the impact of international student and scholar mobility on global collaborative patents. Fourth, there are very few field experiments in international student or migration research. These issues need to be understood for the development of appropriate policies in industrialized, emerging and developing economies, on the global mobility of students as well as establishment of branch campuses abroad.