@EdWorkingPaper{ai21-405,
title = "The Impact of International Students on US Colleges: Higher Education as a Service Export",
author = "Mingyu Chen",
institution = "Annenberg Institute at Brown University",
number = "405",
year = "2021",
month = "May",
URL = "http://www.edworkingpapers.com/ai21-405",
abstract = {Between 2005 and 2016, international enrollment in US higher education nearly doubled. I examine how trade shocks in education affect public universities' decision-making. I construct a shift-share instrument exploiting institutions' historical networks with different origins of international students, income growth, and exchange rate fluctuations. Contrary to the critics that US-born students are crowded out, I find international students increase schools' funding via tuition payments, leading to increased in-state enrollment and lower tuition prices. Schools also keep steady per-student spending and recruit more students with high math scores. Lastly, states allocate more appropriations to universities attracting fewer international students.},
}