Can international students help increase China's total factor productivity?

Abstract We examine the impact of international students on China's total factor productivity (TFP) from 2000 to 2017 using two‐way fixed effect, IV‐2SLS, and system GMM methods. The results are as follows. (1) International students can promote the growth of China's TFP. (2) Short‐term international students play a more important role than long‐term international students. International students contributed the most to TFP growth in the eastern region, followed by the central and western regions. (3) The main ways that international students facilitate the growth of TFP are through improving technical progress and reducing education costs.