Benefit-cost analysis of foreign student flows from developing countries: the case of postgraduate education

This paper demonstrates the formulation and computation of major items of benefit and cost that might be included in an evaluation of social rates of return to foreign study, and considers the question of incidence of measured effects between sending, host and third countries. Interest is focused especially on the South/North flow of students at postgraduate level. The methods discussed are illustrated through an application to the case of postgraduate students from Fiji studying at Australian universities. Internal rates of return and net incidence outcomes are calculated, and some policy implications are explored.