Rates &

By: Jordan Sabourin and Christine Yang

Students

Does the exchange rate regime impact the number of students who choose to go abroad for university?

Question

Fixed exchange rate regimes will have more students

studying abroad than floating..

Hypothesis

Fixed Floating

Exchange Rate Regimes & Outbound Students

Exchange Rate Regime

Ou

tbou

nd

Stu

den

ts

● International students and a developing economy

● The role of exchange rate regimes in a developing economy

Why these variables?

● David Singer (2010)● Remittances and exchange rate regimes

● Beine, Noel, & Ragot (2014)● International student mobility

● Nicita (2013)● International trade and exchange rate regimes

Literature

● Fixed (including traditional peg and currency board)● Crawling peg or band● Managed floating● Free floating● Free falling● Dual market

(based on Reinhart and Rogoff’s classification)

Types of Exchange Rate Regimes

● Number of Outbound Tertiary Students (UNESCO 2014)

● Exchange Rate Regime and other data (Rogoff & Reinhart 2010)

● Mean X: most regimes are a crawling peg or band● 1.9

● Mean Y: average students studying abroad● 9,719

Methodology

● Years: 1999-2007

● Number of Countries: 177

● Number of Country-Year Observations: 1,593

Methodology Cont.

rrcoarse=1 rrcoarse=2 rrcoarse=3 rrcoarse=4 rrcoarse=5 rrcoarse=6n=504 n=449 n=194 n=39 n=30 n=23

Std. Dev.=40.98765

Std. Dev.=18.06112

Std. Dev.=19.14948

Std. Dev.=14.80739

Std. Dev.=12.84519

Std. Dev.=3.408907

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

10.8510.14

15.21

9.528.84

4.40

Number of Outbound Students by Exchange Rate Regime

Exchange Rate Regime(rrcoarse classification)

Num

ber

of O

utbo

und

Ter

tiar

y St

uden

ts (t

hous

ands

)

Model 1 Model 2 Model 3 Model 4 

l.outbound 1.104106(0)

1.086759(0)

1.09105(0)

1.077737(0)

rrcoarse -335.722(0.01693)

-678.293(0.007101)

-304.141(0.052843)

-461.866(0.022286)

gdppc_ppp -0.06204(0.018409)

-0.0745(0.092266)

-0.05222(0.091099)

-0.03108(0.107379)

remitpgdp 3.544398(0.675961)

29.7662(0.809534)

2.652465(0.754546)

remit_usd 1.05E-07(0.036453)

7.64E-08(0.275642)

1.36E-07(0.0191)

rem_lag -2.66477(0.786039)

-74.4585(0.558675)

-2.15632(0.820637)

kaopen_lag 6.280963(0.945856)

-21.5797(0.893735)

-55.2557(0.605674)

trade_pgdp -3.87783(0.24953)

-4.48025(0.396365)

-4.51047(0.24854)

grads -0.00011(0.906796)

0.000312(0.699682)

_cons 955.519(0.036153)

2319.89(0.010042)

1026.962(0.04797)

1073.238(0.039799)

         

Observations

842 354 842 401

         Number of Countries

  75 120 86

Regression Results

Dependent Variable Outbound Students

This table depicts the result of four of the eleven regression analyses conducted.

• Consistently negative correlation

• Varying statistical significance

• Effect of exchange rate regime is consistent, but not robust.

Conclusion

• Under-reporting• Missing control variable data

• Misaligned timeframes• New variable

• Unequal development

• Future Study• Filling data gaps

Discussion

● The flow of international students follows theories of international trade

● Fixed exchange rates might remove barriers to study abroad● Good or bad?

● Why do students study abroad? o improve job prospectso gain world perspective

● Should study abroad be encouraged?

Implications