THE ECONOMIC IMPACT OF INTERNATIONAL STUDENTS ON THEIR COUNTRIES OF ORIGIN
Although sending students overseas for post-secondary education is a common phenomenon, no previous research estimates the economic impact of international students on their home country. To address this gap in the literature, this paper uses cross-country panel data in a fixed effects model to estimate the lagged effects of international students on their home country’s GDP growth, while accounting for the unobserved heterogeneity of countries. My results show that, in cases where home country economies are less developed than destination country economies, the international-to-domestic tertiary student ratio in a student’s home country has a positive though diminishing effect on the home country’s economic growth. The ratio is nonlinearly associated with increasing economic growth at a decreasing rate up to a tipping point ratio, when the effect turns negative. The results are more pronounced for graduate than undergraduate students. These findings suggest that home country governments and educational institutions should do more to encourage students to go abroad for higher education not only to spur economic growth, but also to alleviate students’ and their families’ financial burdens.
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Relationship Between Economic Activity and the Size of the International Student Population in OECD Countries Li, Tang (Georgetown University, 2014)Education has become a global business and tertiary education is the biggest contributor. From 1975 to 2011, the number of international students enrolled in tertiary education among the OECD countries grew from 0.8 million ...