International Students and Investments Abroad

Marina Murat

Global Economy Journal, 2017, vol. 17, issue 1, 33

Abstract: This paper analyses the impact of education networks on the FDI from the United States and United Kingdom to 167 countries during 1999–2011. Proxies of networks are international students in the United States and United Kingdom and American and British alumni associations abroad. Results show that international students boost British FDI, while their influence on American FDI is weaker and restricted to non-OECD economies. International alumni associations strongly attract both American and British FDI to the alumni home countries. The different impact of education networks on American and British FDI is partly related to the two countries’ use of soft and hard power. The pro-FDI effects of student ties are disrupted by the use of hard power.

Keywords: international students; alumni; bilateral FDI; education networks (search for similar items in EconPapers)
JEL-codes: F14 F20 I23 J24 (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1515/gej-2016-0037

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