We examine the effects of a branch campus on the social welfare of the host country and the foreign university. Overall, we find that a branch campus increases both the domestic social welfare (measured by the aggregate student utility) and the tuition revenue of the foreign university. The effect of a branch campus on the brain drain is…

This paper considers the effects of a branch campus on the individual college education decision and the economic welfare of a developing country. There are a single domestic college and a single branch campus established by a foreign university. A graduate from the branch campus has an opportunity to emigrate and work abroad, earning a higher…