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…

The recruitment of international students as skilled migrants is increasing in many countries, and most notably in Australia, where the Commonwealth government's immigration and international education policies are now closely aligned. There are three factors that make international students attractive migrants. First, they increase the recruiting…