Revista de economía global

Quantitative Analysis on Economic and Financial Factors behind International Students Tourism (Study Destination Choice): Evidence of China

Abstract

Clemence Gomwe and Ying Li

Using time series data, variables were stationary at first difference, both at 5% and 10% critical value. AIC selection order criteria were used to determine the lag length “one”. Results from the co-integration test prove the existence of a long run relationship between the variables. Scholarship funding, exchange rate and CPI have a positive impact on international students. The Belt and Road initiative have shown to not yield a positive impact on international students yet. The family student paying ability shows that, due to the affordability of tuition in China, families in countries like the USA and S. Korea, have a higher possibility to send students, study in China, which might be one of the reasons why there is a greater number of students from S. Korea and the USA. It is important, however, for China to restructure its employment policies regarding foreigners, as it goes a long way in attracting international students. For further studies, the paper would recommend the use of panel data and or use other econometrics models like the AR model.