Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Theoretical Economics

Editor-in-Chief: Schipper, Burkhard

Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Wenzelburger, Jan

IMPACT FACTOR 2017: 0.220
5-year IMPACT FACTOR: 0.328

CiteScore 2017: 0.28

SCImago Journal Rank (SJR) 2017: 0.181
Source Normalized Impact per Paper (SNIP) 2017: 0.459

Mathematical Citation Quotient (MCQ) 2017: 0.09

See all formats and pricing
More options …

University Competition and Transnational Education: The Choice of Branch Campus

Joanna Poyago-Theotoky
  • School of Economics, La Trobe University, Melbourne, Victoria 3086, Australia
  • GEOLAB, Ionian University, Corfu, Greece
  • Rimini Centre for Economic Research (RCEA), Rimini, Italy
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Alessandro Tampieri
  • Corresponding author
  • Faculty of Law, Economics and Finance, University of Luxembourg, Avenue de la Faencerie 162a, L – 1511 Luxembourg
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
Published Online: 2016-05-27 | DOI: https://doi.org/10.1515/bejte-2015-0052


We present a theoretical framework in which an elitist and a non-elitist university in a developed country compete by choosing admission standards and deciding whether or not to open a branch campus in a developing country. Students from a developing country attend university if either a branch campus is opened or, they can afford to move to the developed country. We find that the elitist university is more likely to open a branch campus. This result is reversed if the gain, in terms of prestige, to attend the home campus of the elitist university more than offsets a student’s mobility costs. A rise in the graduate wage increases the incentive for opening a branch campus, although this incentive is stronger for the elitist university.

Keywords: university competition; branch campus; admission standards; transnational education

JEL: I23; L13; F23


  • Becker, R. 2009. “International Branch Campuses: Markets and Strategies”. Report of the Observatory on Borderless Higher Education.

  • Carroni, E., B. Cesi, and D. Paolini. 2015. “Peer Group, Distance and Tuition Fees: When Widening University Participation is Still Better.” CRENOS working paper 06.

  • Cesi, B., and D. Paolini. 2014. Peer Group and Distance: When Widening University Participation Is Better. University of Manchester: The Manchester School, 82:110–32.Google Scholar

  • De Fraja, G., and E. Iossa. 2002. “Competition among Universities and the Emergence of the Elite Institution.” Bulletin of Economic Research 54:275–93.CrossrefGoogle Scholar

  • Del Rey, E. 2001. “Teaching Versus Research: A Model of State University Competition.” Journal of Urban Economics 49:356–73.CrossrefGoogle Scholar

  • Epple, D., and R. E. Romano. 1998. “Competition between Private and Public Schools, Vouchers and Peer-Group Effects.” American Economic Review 88:33–62.Google Scholar

  • Lien, D. 2006. “Borderless Education and Domestic Program.” Education Economics 14:297–308.CrossrefGoogle Scholar

  • Lien, D. 2008. “Economic Analysis of Transnational Education.” Education Economics 16:149–66.CrossrefGoogle Scholar

  • Lien, D., and Y. Wang. 2010. “The Effects of a Branch Campus.” Education Economics 20:1–16.Google Scholar

  • Pepall, L., and D. Richard. 2014. “Competition, Selectivity and Innovation in the Higher Educational Market,” Discussion Papers Series, Department of Economics, Tufts University 0782, Department of Economics, Tufts University.

  • Ziguras, C. 2003. The Impact of the GATS on Transnational Tertiary Education: Comparing Experiences of New Zealand, Australia, Singapore and Malaysia. Australian Education Researcher 30:89–109.CrossrefGoogle Scholar

About the article

Published Online: 2016-05-27

Published in Print: 2016-06-01

Citation Information: The B.E. Journal of Theoretical Economics, Volume 16, Issue 2, Pages 739–766, ISSN (Online) 1935-1704, ISSN (Print) 2194-6124, DOI: https://doi.org/10.1515/bejte-2015-0052.

Export Citation

©2016 by De Gruyter.Get Permission

Comments (0)

Please log in or register to comment.
Log in