An Economic Analysis of the Demand for Overseas Higher Education with Survey Data from China: Investment or Consumption?

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Zhou Jinyan; Xu Jiangyan; Zhang Yaxing; Zhong Changhong

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Journal Paper

Paper Information

Journal: JOURNAL OF HIGHER EDUCATION POLICY AND LEADERSHIP STUDIES Year:2024 | Volume:5 | Issue:4 Page(s): 48-66

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Title

An Economic Analysis of the Demand for Overseas Higher Education with Survey Data from China: Investment or Consumption?

Author(s)

Zhou Jinyan | Xu Jiangyan | Zhang Yaxing | Zhong Changhong | Issue Writer Certificate

Keywords

Consumption

Investment

Overseas Higher Education

HE in China

Cost

Benefit

Abstract

With China’s economic development and the internationalization of higher education, more students in China, particularly the younger ones, are choosing to study abroad. This study examines their reasons for choosing international over domestic education and evaluates their preferences using an economic model incorporating human capital and consumption behavior theories. The models evaluate both the long-term benefits and immediate gratifications of studying abroad. A survey data from senior high school students across seven Chinese cities shows that under self-funding, factors including economic returns, consumption values, pricing, and financial constraints significantly drive the intention to study abroad. However, when studies are financed through loans, only the impact of consumption benefits remains significant. This trend underscores a concerning pattern in China, where poor financial decisions related to international education lead to poverty. It is essential to highlight the financial risks and potential consequences associated with excessive investment in overseas education, especially when undertaken without adequate support or careful planning.

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