What is it about?
The paper tests the influence of international students in the UK and the US on the investments of these two countries in the students' home countries. It finds that international students have a positive and robust impact on the UK's FDI and a weaker one those of the US. Transnational alumni associations, a direct indicator of students' transnational networks, burst both the UK and US investments abroad.
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Why is it important?
It adds to the debate on the effects of international migration on destination and origin countries. International students are a specific kind of temporary migrants, who move abroad to invest in human and social capital, and tend to return home after completing their studies. They bring home knowledge on the foreign country institutions, norms and economy, which help to promote bilateral trade and, indirectly, growth.
Perspectives
It also adds to the current debate on the migration policies of rich Western countries. Limiting the number of permits to international students harms both destination and origin countries.
Marina Murat
Universita degli Studi di Modena e Reggio Emilia
Read the Original
This page is a summary of: International Students and Investments Abroad, Global Economy Journal, January 2016, De Gruyter,
DOI: 10.1515/gej-2016-0037.
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