Trade In Higher Education Services Research Articles

The exports of higher education services from OECD countries to Asian countries: A gravity approach

AbstractWe analyse bilateral exports of higher education services between OECD countries and Asia, using a gravity equation approach, panel data from 1998 to 2016 and PPML regression. The approach treats higher education consumption by Asian countries as a consumable durable good reflecting investment in human capital. Asian students come to OECD countries to obtain degrees from their universities. Structurally, the flow of students from Asian country j to OECD country i depends on the higher education capacity of i, the perceived quality of universities in i, expected earnings in i, a series of bilateral transaction costs between i and j, the income per capita in j, school‐age demographics in j and the usual multilateral trade resistance terms. We find that bilateral flows of students are strongly influenced by wage levels in the host country, bilateral distance, importers’ income, demographics, common language, the visa regime prevailing in bilateral country pairs and the network of migrants from j in i. These results hold through a variation of specifications, proxies and estimation methods. We find mixed evidence on the role of tertiary education capacity in OECD countries and no evidence of a country's university reputations explaining the flow of students. The evolution over time of education capacity, earnings, visa regimes, migrant networks, strong income growth and changes in demographics in nearby export markets explain the emergence of Australia, Canada, Korea and New Zealand and the loss of market share by the US, which still strongly dominates international trade in higher education services. The decline in Chinese students coming to the US is also predicted for the most recent years driven by the reduction in its college‐age population.

Experience of Foreign Higher Education Service Trade and Its Enlightenment to China

With China’s entry into WTO, China’s trade in higher education services has developed rapidly. In addition to the highly developed economy, the broad market prospect has attracted more and more foreign students. However, China’s current trade in higher education services is still at the initial stage of development, showing an obvious trade deficit. From the perspective of international comparison, this study combs the development process of education service trade in major developed countries, summarizes the general rules and basic modes of its development, discusses various factors that affect the competitiveness of its national education service trade, thus analyzing the development characteristics and international competitiveness of education service trade in major developed countries, and summarizing the relevant experience and enlightenment of the development of education service trade in major developed countries. On this basis, the current situation of China’s higher education service trade is comprehensively combed, the main problems existing in China’s higher education service trade are analyzed, and reasonable ways to improve the competitiveness of China’s higher education service trade are put forward from aspects of perfecting the legislative content of higher education service trade, formulating development plans and policies, and strengthening the construction of education service institutions themselves.

INTERNATIONAL COMPETITIVENESS OF INDONESIA’S HIGHER EDUCATION SERVICES TRADE

Asia is one of the fastest growing destinations for international students. Therefore, this paper was conducted by conducting a comparative study and empirical study with the aim to find out Indonesia's international competitiveness for the higher education service trade aspect, which is compared with seven other countries. To measure the international competitiveness in the higher education services trade, data from 2010 to 2017 on the number of sending and receiving students in a country and other more complex data have been used to obtain valid results. A comparative study conducted by calculating data from eight countries using the IMS, TCI and RCA measurement methods, and empirical analysis conducted using a questionnaire survey with 302 respondents' data obtained to find out the significant factors that influence the competitiveness. The results show that although Indonesia's higher education service trade is unstable every year, it still has certain competitiveness in the international scope. In addition, culture, quality of higher education and cost of living have a significant impact on the international competitiveness of higher education service trade. On this basis, this paper puts forward some countermeasures and suggestions on how to improve the international competitiveness of Indonesia's higher education service trade, including: promoting the development of Indonesian culture, improving the quality of higher education, reducing tuition fees and living costs, increasing the employment opportunities for foreign students and promoting the balanced growth of Indonesian economy.
 
 Keywords: International Competitiveness; Service Trade; Higher Education; Indonesia;

The Exports of Higher Education Services from OECD Countries to Asian Countries, A Gravity Approach

We analyze bilateral exports of higher education services between OECD countries and Asia, using a gravity equation approach, panel data from 1998 to 2016, and PPML regression. The approach treats higher education consumption by Asian countries as a consumable durable good reflecting investment in human capital. Asian Students come to OECD countries to obtain degrees from their universities. Structurally, the flow of students from Asian country j to OECD country i depends on the higher-education capacity of i, the perceived quality of universities in i, expected earnings in i, a series of bilateral transaction costs between i and j, the income per capita in j, school-age demographics in j, and the usual multilateral trade resistance terms. We find that bilateral flows of students are strongly influenced by wage levels in the host country, bilateral distance, importers’ income, demographics, common language, the visa regime prevailing in bilateral country pairs, and the network of migrants from j in i. These results hold through a variation of specifications, proxies, and estimation methods. We find mixed evidence on the role of tertiary education capacity in OECD countries and no evidence of a country’s universities reputations explaining the flow of students. The evolution over time of education capacity, earnings, visa regimes, migrant networks, strong income growth and changes in demographics in nearby export markets explain the emergence of Australia, Canada, Korea, and New Zealand and the loss of market share by the US, which still strongly dominates international trade in higher education services. The decline in Chinese students coming to the US is also predicted for the most recent years driven by reduced by its college-age population.

A framework for enhancing regulatory cooperation in external quality assurance in Southern Africa

ABSTRACTCross-border higher education (CBHE) has taken centre stage in the Southern Africa Development Community (SADC). There has been increased trade in higher education services among member states of the SADC. This has necessitated regional regulatory cooperation in quality assurance and accreditation. SADC has established the Southern African Quality Assurance Network as a regional network of external quality assurance agencies. This paper presents a framework that can be used to enhance regulatory cooperation within the Network on quality assurance in higher education with special focus on CBHE. The paper identifies the main areas of focus as people mobility, institutional and programme mobility, accreditation and registration and recognition of academic credentials. Proposed mechanisms for regulatory cooperation include regional credit accumulation and transfer system, regional qualifications framework, framework for accreditation and registration of foreign providers and framework for recognition of academic credentials.

The High Profile of Trade in Higher Education Services

Proponents of free trade in higher education services present legitimate and convincing arguments to include higher education in major international trade agreements like the General Agreement on Trade in Services (GATS). Increasing access for American providers to foreign markets, providing services to willing education consumers abroad, and expanding educational opportunities in countries with less broadly developed systems of higher education are some of the perceived benefits of removing trade barriers to higher education providers. Indeed, free-trade supporters enjoy advocates in high places, including the U.S. Office of the Trade Representative (USTR), who promote such benefits of free trade for American higher education interests overseas. The protrade position, however, lacks a developed perspective on the implications of free trade for domestic higher education. A few informed representatives at national higher education associations have produced the only localized response from American higher education to the issue of including higher education in any trade agreements. Thus far, however, the issues raised locally have not led to a more broadly informed debate about the topic. It may be useful to present a “worst-case scenario” to showcase some of the ways in which trade liberalization could adversely impact American higher education through GATS and other international trade agreements.

The Advantage and Development Strategy of China's Higher Education Overseas Consumption Service Trade

Overseas consumption has become the most important way of international service trade in higher education. From the global perspective, there exists serious imbalance in the overseas consumption for higher education service trade. However, in the context of the growing popularity of global Chinese, the service our higher education provides for overseas students remain obvious prominent advantage in the term of traditional disciplines and service prices. Analysis of the advantages of the current higher education consumption in overseas service trade to develop and implement appropriate strategies is a very important and urgent practical issue for the promoting China's international trade in higher education services in the near future. The government must provide huge support for foreign students education system; colleges and universities must add international education, strengthen the teaching of Chinese as a foreign language, meet the students needs of local Chinese curriculum and discipline, so that a suitable learning and living environment for overseas studented can be created.

Global trends in higher education: an unexpected convergence between France and India

We propose to examine an unexpected convergence between the higher education systems of two heterogeneous countries, namely France and India. After a brief comparative survey, we address the issue of the commodification of higher education in order to determine whether the latter evolution has been acknowledged, encouraged or opposed by governments. The modern setting in which higher education institutions operate is partly determined by GATS rules that govern international trade in higher education services, notably through the enhancement of new modes of delivery such as e-learning and distance education. We then extend our reflection to bridge the gap between France and India. Finally, the convergence of academic, economic and institutional factors helps us put forward the new idea of an Indo-French knowledge-based triangle.

The Rise of Transnational Higher Education in Asia: Student Mobility and Studying Experiences in Singapore and Malaysia

In recent decades, trade in higher education services has become increasingly popular in Asia. Realizing the importance and the economic potential of higher education not only for generating national incomes, but also for asserting soft power in the highly competitive world, the governments of Malaysia and Singapore have put serious efforts in questing for the regional education hub status, engaging overseas partners to diversify transnational higher education (TNHE) programmes catering for local citizens’ and foreign students’ pressing education demand. In this context, this article aims to examine TNHE degree students’ evaluation of their studying experiences in Singapore and Malaysia in a way to apprehend the progress, achievement and difficulties of these two potential education hubs in Asia.

Impact of Liberalization in Services on Higher Education

Since independence, the higher education system has grown rapidly and today, India is the third largest higher education system in the world (after China and the USA) in terms of enrollment. However, in terms of the number of institutions, India is the largest higher education system in the world with 17973 institutions (348 universities and 17625 colleges).The actual expenditure has increased by more than 100 times from Rs. 140 million in the first Five-Year plan to Rs. 15 billion in the eighth Five-year plan at current prices, and 6.5 times in terms of real prices. Thus, although higher education in India is characterized by massive public investment, this investment is still regarded as much below the required levels. Based on the United Nations Provisional Central Product Classification, trade in educational services is organized in five categories of service — Primary Education, Secondary education, Higher Education, Adult Education and other Education.Different modes of higher education services are--Mode 1: Cross-border Supply, Mode 2: Consumption Abroad, Mode3: Commercial Presence, and Mode 4: Presence of Natural Persons.It is estimated that nearly 70,000 to 90,000 students leave India every year for studying abroad. At any given time these 320,000 students cost the country a foreign exchange out flow of nearly US $9 billion per year or nearly Rs. 400 billion per year, enough to build 40 IIM’s and 20 IIT’s per year. India can become an Educational Hub for the world and earn US $ 100 billion per year, after 10-20 years. Indian needs to start now, but has to liberalize higher education further.Presently India is incurring on an average expenditure of about Rs. 50 thousand per head for about 1,800 foreign students coming under the purview of the ICCR. Some of the leading universities are reluctant to accept ICCR scholars from abroad at normal fees.Presence of female students in the higher education in India has been constantly increasing. Female students’ percentage in academic year 2001- 2002 rose to 39.8% from 36% from that of 1995-1996.To combat the declining competitive advantage of India with respect to China and to emulate the Excellency of higher education institutions of US, UK, Australia, New Zealand and Canada, the following steps may be initiated:* Develop efficient Higher Education Statistical Systems.* Reduce multiplicity of regulatory system (create credible mechanisms to strengthen regulation and universal access policies).* Diversify existing branded public institutions into different modes of trade in higher education services.* Setting up of export oriented higher education institutions/ institutional areas (Like 100 % export oriented manufacturing units).* Eulogize abroad ‘Study India Programme’.* Provide incentives for expanding into new geographical region for private sector higher education institutions.* Ease of facilitation for Indian faculty members & scholars while pursuing Mode- 2&4.* Differentiated academic system for fostering excellence.* Create at least 10 to 20 world class self sustaining higher educational and research facilities like ISB in the next five years.

Higher education exports in South Africa: A case study of Stellenbosch University

International trade in higher education services is one of the fastest growing tradable service sectors globally. Apart from the positive externalities international students create through knowledge mobility and spill-over, campus diversity, and local community development participation, spending by international students in the host city and immediate surroundings add significantly to local economic growth. The aim of this article is to show, firstly, the relative strong growth of South Africa’s higher education exports vis-à-vis other countries. We also find that South Africa has a strong comparative advantage in exporting higher education services. Secondly, we use a pilot questionnaire conducted in 2009 at Stellenbosch University to estimate the economic impact of these students on the local economy. We find that international students contribute between R159 million and R172 million per semester to the local economy, in addition to the positive – but largely unquantifiable – externalities they create.

Impact of Trade in Higher Education Services on Central and Eastern European Countries' Economic Development

This paper discusses the ways in which international trade in higher education services impacts the economic development of Central and Eastern European Countries. The economic impact of cross-border education can be seen from two perspectives. We have identified the first one, on the short run, which takes into account the national trade accounts, that is the imports and exports of education. From this point of view the considered countries are at a loss, most of them being net importers of higher education. On the other hand, there is the long run perspective which incorporates the imports of education in the strategy of national capacity building, which is a premise for economic development. Therefore, the countries are better off importing higher education as this will increase the economic growth in the future. However, imports for capacity building are effective only in the case of an existing coherent strategy for development which includes higher education. And in matter of strategy, implementation and regulations is where the Central and East European Countries need to pun more effort so as to maximize the benefits from international trade with higher education services

Trade in Higher Education Services in Malaysia: Key Policy Challenges

In recent years, Malaysia has emerged as an unexpected contender in the world market for international students in higher education. Recognizing this sector as a potential new source of growth and export revenue, Malaysia aims to become a regional hub for higher education. In view of this, the objectives of this paper are to profile the pattern of trade in higher education services in Malaysia and to analyze the main factors that have contributed toward the trade performance of this sector. The paper also seeks to identify key policy challenges faced by the country in terms of enhancing the trade in this sector. The main findings show that the trade pattern has changed over time and this change is contributed by both external and internal changes, including unilateral liberalization measures. Key policy challenges for enhancing trade lie in removing domestic constraints in the face of increasing competition from other emerging contenders as well as attaining international accreditation and recognition for home-grown programmes. Policy directions for the future need to address these domestic hindrances as well as to rationalize the number of players. Since Malaysia's increasing trade in this sector has largely evolved without offering this sector for liberalization until recently, it is important to reassess the potential costs and benefits of further liberalization before committing this sector for liberalization in more trade agreements.

Trade in Services and Its Policy Implications: The Case of Cross-Border/ Transnational Higher Education in Malaysia

The geography of trade in services is becoming increasingly important for a developing country such as Malaysia. But, present discussion on trade in education services, in particular, higher education and the General Agreement on Trade in Services (GATS) in Malaysia is rather limited and takes a short-term perspective. This is especially so with respect to the analysis of the impact of the GATS negotiations on the Malaysian higher education system. This article discusses Malaysia’s current negotiating position insofar as trade in higher education services is concerned. Malaysia’s prospects of gaining from trade in higher education services are analyzed.

A Critical Analysis of the UNESCO/OECD Guidelines for Quality Provision of Cross‐Border Higher Education

The nation state is not helpless if it wishes to respond to the significant increase since the 1980s in the cross‐border provision of higher education. In 2003, the General Council of the United Nations Educational, Scientific and Cultural Organisation (UNESCO) nevertheless commissioned the development of practices and principles to further regulate cross‐border provision of higher education. These were published in late 2005. UNESCO argues that any risks to students and others of ‘poor quality’ cross‐border provision of higher education must be addressed. Even if it can be shown, however, that certain risks accompany trade in higher education services, this does not, in and of itself, justify the regulatory response suggested by the Guidelines for Quality Provision in Cross‐border Higher Education, or any other response. This article argues that the guidelines have been defined without any consideration of the potential net benefits, which could be negative, associated with their implementation. Several important implications and limitations of the guidelines are also explored.

An evolution of distance learning issues: From exporting to enhancing the classroom experience

THERE ARE MANY DIFFERENT FORMATS being used for distance learning and each has implications for institutional and public policies. With almost 90% of U.S. public colleges and universities offering distance learning courses, it is important for all members of the academy to be aware of these implications as they consider their own involvement in e-learning activities. The areas covered in this paper include: shifting formats for distance learning that enable new pedagogical approaches, budget changes, state policy influences, new approaches to intellectual property issues, open educational resources, and international trade in higher education services.

GATS and the Education Service Industry: The Politics of Scale and Global Reterritorialization

One consequence of the hype around globalization and education and debates on global political actors such as the World Bank, IMF and WTO—is that there has not been sufficient attention paid by education theorists to the development of a rigorous set of analytic categories that might enable us to make sense of the profound changes which now characterize education in the new millennium. 1 This is not a problema confined to education. Writing in the New Left Review, Fredric Jameson observes that debates on globalization have tended to be shaped by “…ideological appropriations— discussions not of the process itself, but of its effects, good or bad: judgements, in other words, totalizing in nature; while functional descriptions tend to isolate particular elements without relating them to each other.” In this paper we start from the position that little or nothing can be explained in terms of the causal powers of globalization; rather we shall be suggesting that globalization is the outcome of processes that involve real actors—economic and political—with real interests. Following Martin Shaw, we also take the view that globalization does not undermine the state but includes the transformation of state forms; “…it is both predicated on and produces such transformations.”3 Examining how these processes of transformation work, however, requires systematic investigation into the organization and strategies of particular actors whose horizons or effects might be described as global.

International Trade in Higher Education Services in the Asia Pacific Region: Trends and Issues

The expansion of trade and investment in the global economy since the 1980s has been accompanied by an associated growth in the international trade in education services, particularly higher education. In this paper we provide a detailed analysis of the expansion of higher educational mobility, measured by the burgeoning numbers of tertiary students going abroad to study. In particular, this paper investigates the increasing mobility of students from the Asia Pacific region undertaking study in Western Europe, North America and Australia. The paper argues that increasing international trade in education services in the Asia Pacific region reflects the strategic importance of these services to develop and maintain the long-term economic and social viability of these nations. Increasingly governments throughout the world now recognize the crucial role of education in fostering economic growth (especially in new knowledge-based sectors), personal and social development, as well as reducing inequality. Nations with well-established and prestigious higher education systems such as the United States, the United Kingdom and Australia have been the main beneficiaries of this growing trade in education services. These countries have been at the forefront of educational exports as they have led aggressive marketing campaigns to recruit new students as well as develop new methods of higher education provision and delivery. Further, this paper explores the positive and negative effects of student mobility, and the linkages between the internationalization of higher education and the professions. Finally, this study makes some suggestions for further research.

International Trade in Higher Education Services in the Asia Pacific Region – The ASEAN Experience and the Role of APEC

International Trade in Higher Education Services in the Asia Pacific Region – <i>The ASEAN Experience and the Role of APEC</i>

The Economic and Political Impact of Study Abroad

Previous articleNext article No AccessThe Economic and Political Impact of Study AbroadGerald W. FryGerald W. Fry Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Comparative Education Review Volume 28, Number 2May, 1984Foreign Students in Comparative Perspective Sponsored by the Comparative and International Education Society Article DOIhttps://doi.org/10.1086/446431 Views: 71Total views on this site Citations: 17Citations are reported from Crossref Copyright 1984 The Comparative and International Education SocietyPDF download Crossref reports the following articles citing this article:Jasmine Pearson, Karen E. McNamara, Celia McMichael International student mobility: Pacific Islander experiences of higher education in Australia, Asia Pacific Viewpoint 20 (Apr 2022).https://doi.org/10.1111/apv.12342Junjian Gu Do at home as Romans do? CEO overseas experience and financial misconduct risk of emerging market firms, Research in International Business and Finance 60 (Apr 2022): 101624.https://doi.org/10.1016/j.ribaf.2022.101624Amy Roberts, Gregory S. Ching The Ebb and Flow of Study Abroad: A Comparative Analysis of PRC and International Students in Taiwan, Sustainability 13, no.1111 (May 2021): 5844.https://doi.org/10.3390/su13115844Michiel Baas The Education‐Migration Industry: International Students, Migration Policy and the Question of Skills, International Migration 57, no.33 (Feb 2019): 222–234.https://doi.org/10.1111/imig.12540Adele Del Sordi Sponsoring student mobility for development and authoritarian stability: Kazakhstan’s Bolashak programme, Globalizations 15, no.22 (Dec 2017): 215–231.https://doi.org/10.1080/14747731.2017.1403780Chuing Prudence Chou, Gregory S. Ching Cross-Straitization of Higher Education: Voices of the Mainland Chinese Students Studying in Taiwan, International Journal of Information and Education Technology 5, no.22 (Jan 2015): 89–94.https://doi.org/10.7763/IJIET.2015.V5.482My Linh Thi Nguyen Vietnamese Students' Transitions in Study Abroad Programs, Australian Journal of Career Development 21, no.33 (Oct 2012): 13–22.https://doi.org/10.1177/103841621202100303Chuing Prudence Chou, Gregory Ching Influx of International Students into Taiwan, (Jan 2012): 243–256.https://doi.org/10.1057/9780230120143_14 Yi Zhang CSCC Review Series Essay: Education Abroad in the U.S. Community Colleges, Community College Review 39, no.22 (Apr 2011): 181–200.https://doi.org/10.1177/0091552111404552Amy Roberts, Gregory S. Ching Concepts, Contributions, and Challenges of the Contemporary University Community in Taiwan, (Jan 2011): 41–61.https://doi.org/10.1057/9781137002006_3Amy Roberts, Prudence Chou, Greg Ching Contemporary trends in East Asian higher education: dispositions of international students in a Taiwan university, Higher Education 59, no.22 (May 2009): 149–166.https://doi.org/10.1007/s10734-009-9239-4Cynthia M. Daily, Stephanie Farewell, Gaurav Kumar Factors Influencing the Decision of International Students to Attend U.S. Business Schools, SSRN Electronic Journal (Jan 2007).https://doi.org/10.2139/ssrn.1025491Matthew W. Phillips, Charles W. Stahl International Trade in Higher Education Services in the Asia Pacific Region: Trends and Issues, Asian and Pacific Migration Journal 10, no.22 (Jul 2016): 273–301.https://doi.org/10.1177/011719680101000203Ann Bourke A Model of the Determinants of International Trade in Higher Education, The Service Industries Journal 20, no.11 (Jan 2000): 110–138.https://doi.org/10.1080/02642060000000007Christopher Heaton, David Throsby Benefit–Cost analysis of foreign student flows from developing countries: The case of postgraduate education, Economics of Education Review 17, no.22 (Apr 1998): 117–126.https://doi.org/10.1016/S0272-7757(97)00019-8Mary E. McMahon Higher education in a world market, Higher Education 24, no.44 (Dec 1992): 465–482.https://doi.org/10.1007/BF00137243C. D. Throsby The financial impact of foreign student enrolments, Higher Education 21, no.33 (Apr 1991): 351–358.https://doi.org/10.1007/BF00132725