Investment Flows, Talent Inflows: Unraveling the Spatial Spillover Effects of FDI on College Students’ City Choice

Meng Cai () and Jianguo Xie ()
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Meng Cai: Nanjing University
Jianguo Xie: Nanjing University

Journal of the Knowledge Economy, 2025, vol. 16, issue 2, No 142, 9847-9872

Abstract: Abstract This paper examines the relationship between foreign direct investment and a city’s ability to attract college students from the perspective of spatial spillovers. Using data from Chinese cities spanning 2011–2019, we employ spatial econometric modeling to analyze the spatial spillover effects of foreign direct investment (FDI) on improving cities’ ability to attract college students. Our findings indicate significant spatial dependence for both FDI and the ability to attract college students. FDI in neighboring cities significantly enhances the focal city’s capacity to attract students. Capital stock, technology, and consumption emerge as the primary mechanisms driving this effect. The study offers policy implications on how cities can effectively harness the spatial spillover effects of FDI to improve their attractiveness to students amid intense competition for talent.

Keywords: College students; Talent policy; Foreign direct investment; Economic development; Spatial spillover effect (search for similar items in EconPapers)
JEL-codes: F16 I25 J11 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02288-y

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