EconPapers    
Economics at your fingertips  
 

University Competition and Transnational Education: The Choice of Branch Campus

Joanna Poyago-Theotoky and Alessandro Tampieri

Working Paper series from Rimini Centre for Economic Analysis

Abstract: We present a theoretical framework in which an elitist and a non-elitist university in a developed country compete by choosing their admission standards and deciding whether or not to open a branch campus in a developing country. Students from a developing country attend university if either a branch campus is opened or, they can afford to move to the developed country. We characterise the equilibria by focussing on the relationship between the investment costs of a branch campus and the graduate wage. There are three type of equilibria: (i) no branch campus is opened, (ii) only the elitist university opens a branch campus and (iii) both universities engage in transnational education, opening a branch campus. Very high investment costs discourage investment. A rise in the graduate wage increases the incentive for opening a branch campus, although this incentive is stronger for the elitist than the non-elitist university. Surprisingly, a government subsidy for opening a branch campus may be ineffective in ensuring investment by both universities.

Date: 2015-03
New Economics Papers: this item is included in nep-edu
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.rcea.org/RePEc/pdf/wp15-15.pdf (application/pdf)

Related works:
Journal Article: University Competition and Transnational Education: The Choice of Branch Campus (2016) Downloads
Working Paper: University Competition and Transnational Education: The Choice of Branch Campus (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:15-15

Access Statistics for this paper

More papers in Working Paper series from Rimini Centre for Economic Analysis Contact information at EDIRC.
Bibliographic data for series maintained by Marco Savioli (marco.savioli@unisalento.it).

 
Page updated 2025-03-22
Handle: RePEc:rim:rimwps:15-15