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Four Essays on University Economics - KOPS - Universität Konstanz

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to finance the first period of their stay in Germany by other means.<br />

Return of foreign students<br />

Programs 1 and 2 are restricted to students from developing countries in Africa, Asia,<br />

Latin America and the Middle East. The maximum durati<strong>on</strong> for financial support is three<br />

years.<br />

The KAAD also runs an Eastern European Scholarship Program (Program 3) that<br />

supports students from Eastern and South-Eastern Europe in financing primarily short<br />

term stays (of two to six m<strong>on</strong>ths) in Germany for research or study purposes. Similar to<br />

the first program, partner organizati<strong>on</strong>s propose candidates which are then selected and<br />

invited by the Academic Committee.<br />

The KAAD actively encourages return. If a scholar does not return to his or her home<br />

country or to another developing country at the end of the study period in Germany, the<br />

funds received from the KAAD and any additi<strong>on</strong>al aid must be repaid in full. Moreover, the<br />

KAAD offers seminars which address topics of development policy and provide assistance<br />

for reintegrati<strong>on</strong>.<br />

3.3.2 Other Instituti<strong>on</strong>s and the Foreign Student Populati<strong>on</strong> in Germany<br />

Other Scholarship Instituti<strong>on</strong>s<br />

The grant policy of the KAAD resembles that of other scholarship organizati<strong>on</strong>s. Well-<br />

known scholarship organizati<strong>on</strong>s like the Fulbright program or the Ford foundati<strong>on</strong> (USA)<br />

also support students from developing and transiti<strong>on</strong> countries with the aim to foster<br />

development and expect their scholars to return. 5 Selecti<strong>on</strong> criteria for scholarships usually<br />

include above-average performance at university or work, and societal involvement.<br />

Organizati<strong>on</strong>s which provide scholarships to foreign students who do not yet study in<br />

the respective host country often rely <strong>on</strong> local councils in the home countries to (pre-)select<br />

the scholarship recipients. The Fulbright Program for example has its own local selecti<strong>on</strong><br />

committees.<br />

The KAAD program has two distinctive features: the preferential selecti<strong>on</strong> of catholics<br />

and the payback requirement if the scholarship recipient stays. In our analysis, we c<strong>on</strong>trol<br />

for the preferential selecti<strong>on</strong> of catholics by including a dummy for being catholic. The<br />

payback requirement does not seem to compromise the underlying data via a selecti<strong>on</strong><br />

5 see Spilimbergo (2007)<br />

56

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