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Confucius Institute's Effects On China's Higher Education Exports: A Perspective From Cultural Difference And Institutional Quality, Donald Lien, Feng Yao, Fan Zhang Jan 2018

Confucius Institute's Effects On China's Higher Education Exports: A Perspective From Cultural Difference And Institutional Quality, Donald Lien, Feng Yao, Fan Zhang

Economics Faculty Working Papers Series

This article uses a panel data of international student flows to China from 2000–2014 to investigate Confucius Institute (CI)’s effects on China’s educational service exports. We find that CI, as a comprehensive platform for promoting Chinese language and cultural exchange, has a significant positive effect on China’s education exports. The effects of CI on China’s education exports are transmitted through promoting Chinese language, bridging cultural gaps, and reducing psychic distance. We further find that the effects of CI on China’s education exports are heterogeneous, depending on the level of cultural difference and institutional quality ...