Paying out and crowding out? The globalisation of higher education

Stephen Machin and Richard Murphy

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We investigate the rapid influx of overseas students into UK higher education and the impact on the number of domestic students. Using administrative data since 1994/5, we find no evidence of crowd out of domestic undergraduate students and indications of increases in the domestic numbers of postgraduate students as overseas enrolments have grown. We interpret this as a cross-subsidisation and establish causal findings using two methods. Firstly, we use the historical share of students from a sending country attending a university department as a shift-share instrument to predict enrolment patterns. Secondly, we use a change in Chinese visa regulations and exchange rates in combination with strong subject preferences as a predictor of overseas student growth.

Keywords: Overseas students; crowding out (search for similar items in EconPapers)
JEL-codes: I20 I21 I28 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2014-09
New Economics Papers: this item is included in nep-edu and nep-hrm
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http://eprints.lse.ac.uk/60451/ Open access version. (application/pdf)

Related works:
Journal Article: Paying out and crowding out? The globalization of higher education (2017)
Working Paper: Paying out and crowding out? The globalization of higher education (2017)
Working Paper: Paying Out and Crowding Out? The Globalisation of Higher Education (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:60451

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