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  • Cost economies in the provision of higher education for international students: Australian evidence

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    ZhangPUB3980.pdf (314.4Kb)
    Author(s)
    Zhang, Liang-Cheng
    Worthington, Andrew C
    Hu, Mingyan
    Griffith University Author(s)
    Worthington, Andrew C.
    Zhang, Liang-Cheng
    Hu, Mingyan
    Year published
    2017
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    Abstract
    In the past few decades, the additional revenues available via higher education exports (through both relatively higher prices and increased enrolments) have attracted the attention of providers in many developed countries, not least in Anglophone countries like the USA, the UK, Canada and Australia. However, while the revenue case is strong, the institutional cost structures underlying the provision of higher education services for international students remain relatively unknown at the sector level. Accordingly, we offer a comprehensive analysis of the cost economies underlying higher education provision for international ...
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    In the past few decades, the additional revenues available via higher education exports (through both relatively higher prices and increased enrolments) have attracted the attention of providers in many developed countries, not least in Anglophone countries like the USA, the UK, Canada and Australia. However, while the revenue case is strong, the institutional cost structures underlying the provision of higher education services for international students remain relatively unknown at the sector level. Accordingly, we offer a comprehensive analysis of the cost economies underlying higher education provision for international students using a sample of 37 Australian public universities over the period from 2003 to 2012. The findings suggest that it is appealing to enrol additional overseas students given their lower average and marginal costs and the significant economies of scale prevailing in higher education generally. Further, while we find evidence of economies of scope for overseas students only in smaller institutions, there is no evidence of diseconomies of scope, implying the current number of overseas students and their joint production with domestic students at the least does not lead to unnecessarily higher overall costs.
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    Journal Title
    Higher Education
    DOI
    https://doi.org/10.1007/s10734-016-0078-9
    Copyright Statement
    © 2017 Springer Netherlands. This is an electronic version of an article published in Higher Education, Volume 74, Issue 4, Pages 717-734, 2017. Higher Education is available online at: http://link.springer.com// with the open URL of your article.
    Note
    This publication has been entered into Griffith Research Online as an Advanced Online Version.
    Subject
    Education Systems not elsewhere classified
    Education Systems
    Curriculum and Pedagogy
    Specialist Studies in Education
    Publication URI
    http://hdl.handle.net/10072/143702
    Collection
    • Journal articles

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