The Influence Of Enrolling Overseas Students On Economic Development In Our Country

Education for foreign students (abbreviated as EFS below) in China not only serves diplomatic ends, promotes cultural communication and boosts development of education, but also has great significance for China’s economic development. EFS not only stimulates consumption and export, but also contributes to optimization of industry structure. Besides, EFS will enhance China’s economic development through attracting foreign investment and accumulating human capital. Under the new situation, adapting EFS to the trend of China’s development and the CPC’s strategic framework, will contributes more to achieving the goal of "two hundred years" and realizing the Chinese dream of national revival.After multiple periods of start-up, stagnation and consolidation, opening-up and rapid development, EFS in China has grown to large scale. But there are still problems, such as that the scale of education is smaller compared with that of developed countries, the sources of students are mainly confined to Asian countries, the education levels of students are relatively low and students are unevenly distributed. EFS in developed countries and other developing countries provides experience for reference. This dissertation aims to study the internal relation among EFS, public expenditure and economic development, providing scientific basis for the sustainable development of EFS and utilizing EFS to promote transformation of economic development mode.Firstly, through theoretical analysis of economic effects of EFS in China, this dissertation reaches the conclusion that, according to related theories of international trade and economic growth, there are positive effects of EFS in China on expanding China’s internal demand, drawing foreign investment, developing international trade and accumulating human capital. Also, according cost-sharing theories of public goods, public finance and higher education, expanding fiscal expenditure on education can boost EFS in China. Therefore, using public expenditure to supporting development of EFS in China can provide momentum for sustainable and healthy development of macro-economy.Secondly, combining theoretical analysis above with empirical analysis of provincial panel data, this dissertation finds that, on one hand, EFS in China has significant positive effects on China’s consumption, foreign investment, international trade, human capital and development of economy, on the other hand, expnediture of public finance on higher education, especially special expenditure on EFS in China has positive effects on the development of EFS in China. Using Talor index to calculate the differences of student distribution and fiscal expenditure on EFS among areas, the results reveal that differences of fiscal expenditure among areas will affect the distribution of foreign students. The above two conclusion implies that fiscal expenditure will boost EFS in China, which then has positive effects on economic growth through consumption, foreign investment, international trade and human capital.Finally, based on the above theoretical analysis, empirical research and international experience, this dissertation provides suggestions of policies, which include:coordinate EFS in China with internationalization of universities and construction of first-class universities and disciplines; improving management of EFS in China, reform tuition mechanism for EFS in China and improve laws and policies for EFS in China. Increase fiscal support for EFS in China, enlarge the scale and optimize the structure of EFS in China; enhance guiding effects of scholarships, construct a system of various forms of scholarship; improve service of EFS in China; increase propaganda, promotion and organization of alumni of foreign students.