Author : Youjun Shin
The interest for international education and employment abroad has been increasing and their impact has become more important over the years. This report attempts to study a hypothetical Shock of an increase of Expenditure on foreign students and employment to economic structure. The VIO (Dynamic Variable Input-Output) model is utilized. It is different from the traditional method Leontief's matrix since the input substitution is available so that output of each industry can be influenced. The goal is to show the impact of increasing the expenditure in education and research sectors for the years 2000, 2005 and 2010. As a result, the efficiency of Expenditure Shock is larger to education sector than to research sector and real estate activity, accommodation and food service activities, aggregated manufacturing, wholesale and retail trade show higher sensitivity to expenditure shock than other industries.
