The Effect of Real Exchange Rate Volatility on the Trade of Educational Services

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Abstract

This article finds that high levels of real exchange rate volatility between two trading partners significantly decrease the amount of educational services traded. Many academic institutions are actively looking to expand exports of educational services as a means of increasing revenues. Internal policies that reduce real exchange rate uncertainty may help encourage trade of educational services between countries where volatility is high. The discovery that real exchange rate volatility serves as a significant barrier to attracting educational export opportunities to certain countries underscores an obstacle that should and/or could be addressed as academic institutions strive to expand their international enrollments.

Original languageEnglish (US)
Pages (from-to)1-18
Number of pages18
JournalInternational Trade Journal
DOIs
StateAccepted/In press - Mar 5 2017

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All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Economics, Econometrics and Finance(all)

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