Confucius Institute's Effects on China's Higher Education Exports: A Perspective from Cultural Difference and Institutional Quality

Donald Lien, Feng Yao and Fan Zhang
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Donald Lien: University of Texas at San Antonio
Feng Yao: West Virginia University
Fan Zhang: Ripon College

No 18-04, Working Papers from Department of Economics, West Virginia University

Abstract: This article uses a panel data of international student flows to China from 2000–2014 to investigate Confucius Institute (CI)’s effects on China’s educational service exports. We find that CI, as a comprehensive platform for promoting Chinese language and cultural exchange, has a significant positive effect on China’s education exports. The effects of CI on China’s education exports are transmitted through promoting Chinese language, bridging cultural gaps, and reducing psychic distance. We further find that the effects of CI on China’s education exports are heterogeneous, depending on the level of cultural difference and institutional quality in the host country. The effects of CI to boost international student flows to China are more prominent in host countries with smaller cultural difference or lower institutional quality. Furthermore, the effects of cultural difference and institutional quality exhibit distinct patterns, hinging on the types of student flows.

Keywords: Confucius Institute; education export; culture difference; institutional quality (search for similar items in EconPapers)
JEL-codes: F10 L83 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2018-02-14
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