Suryawati Suryawati, Chen Lizhen


Asia is one of the fastest growing destinations for international students. Therefore, this paper was conducted by conducting a comparative study and empirical study with the aim to find out Indonesia's international competitiveness for the higher education service trade aspect, which is compared with seven other countries. To measure the international competitiveness in the higher education services trade, data from 2010 to 2017 on the number of sending and receiving students in a country and other more complex data have been used to obtain valid results. A comparative study conducted by calculating data from eight countries using the IMS, TCI and RCA measurement methods, and empirical analysis conducted using a questionnaire survey with 302 respondents' data obtained to find out the significant factors that influence the competitiveness. The results show that although Indonesia's higher education service trade is unstable every year, it still has certain competitiveness in the international scope. In addition, culture, quality of higher education and cost of living have a significant impact on the international competitiveness of higher education service trade. On this basis, this paper puts forward some countermeasures and suggestions on how to improve the international competitiveness of Indonesia's higher education service trade, including: promoting the development of Indonesian culture, improving the quality of higher education, reducing tuition fees and living costs, increasing the employment opportunities for foreign students and promoting the balanced growth of Indonesian economy.

Keywords: International Competitiveness; Service Trade; Higher Education; Indonesia;

Full Text:



Akbar, Ali, Sabran, Shatar, M., Zolfaghari. Internationalization of Higher Education: Challenges, Strategies, Policies and Programs[J]. US-China Education Review, 2009, 6(5): 151-170.

Agenor, P. R., Montiel. Development Economics[M]. The World Bank, 1996: 9-13.

Agnes, Batory, Nicole, L. The Power of the Purse: Supranational Entrepreneurship, Financial Incentives, and European Higher Education Policy[J]. International Journal of Policy, Administration, and Institutions, 2011, 24(2): 311-329.

Alavi, H. International Competitiveness: Determinants and Indicators[J]. World Bank, 1990, 29(2): 54-67.

Altbach, P. G. Higher Education and The WTO: Globalization Run Amok[J]. International Higher Education, 2001, 23(1): 2-5.

Balassa, B. Revealed Comparative Advantage Revisited: An Analysis of Relative export share of Industrial Countries[J]. The John Hopkins University, 1971, 12(2): 9-13.

Bashir, S. Trends in International Trade in Higher Education: Implications and Options for Developing Countries[D]. Washington, D. C: World Bank, 2007.

Bin, J. International Education Service Trade Research-Interpretation of Rules and Commitments of China[J]. China Academia Journal Electronic Publishing House, 2004, 9(1):15-17.

Bridges, D., McLaughlin, T. Education and The Market Place[J]. Falmer, 1994, 8(5): 183-115.

Buckley, P. J., Pass, C. L., Prescott, K. Measures of International Competitiveness: A Critical Survey[J]. Journal of Marketing Management, 1988, 4(2):175-200.

Chellaraj, G., Maskus, K. E., Mattoo, A. The contribution of international graduate students to US innovation[J]. Review of International Economics, 2008, 16(3): 444–462.

Chen, Y. Analysis on the International Competitiveness of China's Education Service Trade[J]. Heilongjiang Foreign Trade, 2010, 10(4): 154-162.

Cockburn, J., Siggel, E., Coulibaly, M., Vezina, S. Measuring Competitiveness and Its Sources: The Case of Mali’s Manufacturing Sector[J]. Canadian Journal of Development Studies, 1999, 20(3): 44-51.

Durand, M. and Giorno, C. Indicators of International Competitiveness: Conceptual Aspects and Evaluation[J]. OECD Economic Studies, 1987, 9(3): 147–182.

Eckhard, S. International Competitiveness and Comparative Advantage: A Survey and A Proposal for Measurement[J]. Springer Science, 2006, 12(6): 137-159.

Ekanayake, E. Exports and Economic Growth in Asian Developing Countries: Co Integration and Error Correction Models[J]. Journal of Economic Development, 1999, 24(2): 43-56.

Fagerberg, J. International Competitiveness[J]. The Economic Journal, 1988, 391(4): 355 – 374.

Francis, A. The Concept of Competitiveness[M]. 1989: Routledge.

Francois, J.F., Reinert, K. A. Applied Methods for Trade Policy Analysis: A Handbook[M]. 1997: Cambridge University Press.

Hao, W., Ying, J., Zhao, C. M. Development Status and International Competitiveness of China's Overseas Education Service Trade[J]. International Economic Cooperation, 2010, 1(2):30-31.

Hardjono, J., Akhmadi, N., Sumarto, S. Poverty and Social Protection in Indonesia[J]. Institute of Southeast Asian Studies, 2010, 12(6): 334-358.

Gao, M. X., Xu, X. J. Introducing Foreign Commercial Presence into Statistical System of International Trade-Study and Reevaluation for China[J]. Statistical Research, 2010, 7(2): 22-25.

Gao, X. Q. The Status Quo of International Trade of University Market Behavior in Major Countries of the World and China's Countermeasures[J]. Journal of Beijing Institute of Education, 2010, 14(1): 5-17.

Garicano, Luis, Rossi, H., Esteban. Organization and Inequality in A Knowledge Economy[J]. Journal Economy, 2006, 121 (4): 1383–1435.

Gu, Y. Y. How to Improve the International Competitiveness of China's Education Service Trade-Based on the Analysis of Three Theoretical Frameworks of International Trade Division of Labor[J]. Technology Economic Market, 2009, 27(3): 100-122.

Hardihardaja, J. Private Higher Education in Indonesia: Current Developments and Existing Problems[J]. UNESCO, 1996, 64(2):31-44/

Hanson, Gordon, H., Harrison, Ann. Trade Liberalization and Wage Inequality in Mexico[J]. Labor Relat, 1999, 52 (2): 271–288.

Helpman, E., Krugman, P. R. Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and The International Economy[M]. 1985: MIT Press.

Highest Education Data Response Ministry of Research. Indonesia's Higher Education Institutions Attract Foreign Students[R]. Jakarta: RISTEKDIKTI, 2017.

Hope, J., Miller, P. Financing Tertiary Education: An Examination of the Issues[J]. Australian Economic Review, 1988,1(4): 37–57.

Huang, X. X. The Problems with Chinese Students Studying Abroad[M]. 1995: Hunan Education Press.

Hufner, K. Higher Education as A Public Good: Means and Forms of Provision[J]. Higher Education in Europe, 2003, 28(3): 339–348.

Jin, X. B. Cross Border Provision in Education Services Trade[J]. International Business Reseacrh, 2008, 6(1): 2-7.

Knight, J. Higher Education Crossing Borders: A Guide to the Implications of the General Agreement on Trade in Service (GATS) for Cross-Border Education[J]. UNESCO and Commonwealth of Learning, 2006, 8(1): 30-34.

Knight, J. Quality and internationalization in higher education[J]. OECD, 1999, 8(3): 71-86.

Krugman, P. Competitiveness: A Dangerous Obsession[M]. 1994: Foreign Affairs.

Krugman, P. Making Sense of the Competitiveness Debate[J]. Oxford Review of Economic Policy, 1996, 12(3): 89-101.

Kulikov, G. Japanese Manager and Theory of International Competitiveness[J]. Ekonomika, 2000, 4(3): 41-51.

Larsen, K., Martin, J. P., Morris, R. Trade in Educational Services: Trends and Emerging Issues[J]. Organisation for Economic Co-operation and Development, 2002, 8(4): 110-118.

Le, T. Are Students Flows a Significant Channel of R&D Spillovers from The North to The South[J]. Organisation for Economic Co-operation and Development, 2010, 16(4): 315-317.

Levin, H. J. Education as A Public and A Private Good[J]. Journal of Policy and Management, 1987, 6(4), 628–641.

Li, H. Z. Comparative Advantage and International Service Trade Motivation: A New Study On Distinguishing Different Trade Patterns[J]. International Trade Research, 2009, 2(1):4-6.

Lim, A. H., Saner, R. Rethinking Trade in Education Services: A Wake-up Call for Trade Negotiations[J]. Journal of World Trade, 2011, 45 (5): 993–1034.

Liu, H. X., Fang, J. X. Research on The Motives of New Era Chinese Students to Study Abroad[J]. China Youth Research, 2011: 7: 86–89.

Liu, X., Kang, M. H. The Status Quo and Countermeasures of International Competitiveness of China's Higher Education Monthly Trade[J]. Contemporary Education Forum, 2007, 8(1): 1-9.

Low, T. Report of the Select Committee of the House of Lords on Overseas Trade[R]. London: 1985.

McPherson, M. S., Schapiro, M. O., G. Winston, G. Paying The Piper: Productivity, Incentives and Financing in US Higher Education[J]. University of Michigan, 1993, 13(7): 192-211.

Meng, Y. H. Business Presence in Service Trade and Natural Person Mobility–Promotion or Inhibition[J]. Finance and Trade Research, 2009, 48(6): 158-166.

Muendler, M. A. Comparative Advantage by Sector of Industry, Brazil 1986-2001[J]. University of California, 6(1): 7-14.

Murat, M. Ought of Sight, Not Out of Mind. Education Network and International Trade[J]. World Development, 2014, 53(2):51-67.

Park, J. International student flows and R&D Spillovers[J]. Economics Letters, 2004, 82(2): 315-320.

Perkins, R., & Neumayer, E. Geographies of Educational Mobilities: Exploring The Uneven Flows of International Students[J]. The Geographical Journal, 2013, 15(1): 23-31.

Porter, M., Sachs, J., Warner, A. Executive Summary: Current Competitiveness and Growth Competitiveness[J]. Oxford University Press, 2000, 48(5): 311-330.

Ray, D. Measuring Indonesia's Technology Capacity: New and Old Approach[J]. KELOLA, 1996, 13(1): 14-16.

Scott, B. R., Lodge, G. C. US Competitiveness in The World Economy[J]. The International Executive, 1985, 27(1): 26-28.

Shevchenko, O. The Model Raises Transnational Competitor Potential: Theoretical-Methodological Aspect[J]. Economics of Donbas, 2011,3(3): 57-60.

Su, J. Z. Survey on The Motives of Chinese Students with Bachelor Degree or Above to Study Abroad[J]. Science and Technology Information, 2013, 17(3): 152–155.

Su, Q. Q., Zhou, X. F. A Comparative Analysis on The International Competitiveness of Sino-US Trade in Hihger Education Service[J]. Atlantis Press, 2016, 28(3): 85-90.

Tilak, J. B. G. Private higher education: Philathropy to profits[J]. Global University Network for Innovation and Palgrave Macmillan, 2005, 15(3): 113-121.

Tilak, J. B. G. Higher Education between The State and The Market[J]. UNESCO, 2006, 55(4): 235-254.

Tilak, J. B. G. Current Trends in Private Sector in Higher Education in Asia[J]. Higher Education Review, 2009, 41(2): 88-101.

Tooley, J. In Defence of Markets in Educational Provision[J]. Falmer, 1994, 7(1): 138–153.

Wang, H. Y. Annual Report on The Development of Chinese Students Studying Abroad[R]. Beijing Social Science Press: 2012.

Weisbrod, B. A. The non-profit economy[J]. Harvard University Press, 1988, 9(2): 24-31.

Winston, G. Subsidies, hierarchy and peers: The awkward economics of higher education[J]. Journal of Economic Perspectives, 1990, 13(1): 13–36.

World Bank. Priorities and strategies for education: A World Bank review[J]. World Bank, 1995, 11(5): 204-211.

Xu, J. Analysis of The Strategic Countermeasures for The Development of International Education Service Trade in China[J]. International Trade and Economics, 2009, 6(2): 25-39.



  • There are currently no refbacks.

International Journal of Economics, Business and Accounting Research (IJEBAR), e-ISSN : 2614-1280 p-ISSN : 2622-4771

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.