The costs and benefits of international students by parliamentary constituency – January 2018

Practice area: Economics of Education | Education and Labour Markets | Higher education
Published: 11 January, 2018
Keywords: impact assessment quantitative analysis

Given the continuing political debate about the inclusion of international students in UK migration targets, and the limited number of analyses of their net economic impact to date, London Economics were commissioned by the Higher Education Policy Institute (HEPI) and Kaplan International Pathways to undertake a detailed analysis of both the benefits and costs to the United Kingdom economy associated with international students. The analysis focuses on the aggregate economic benefits and costs to the UK economy associated with the 231,065 international students commencing their studies in the UK in 2015/16, taking account of the total impact associated with these students over the entire duration of their study in the UK.

 The net economic impact was estimated to be £68,000 for each typical EU-domiciled student in the 2015/16 cohort, and £95,000 generated by each typical non-EU-domiciled student. In other words, every 15 EU students and every 11 non-EU students generate £1m worth of net economic impact for the UK economy over the duration of their studies. Across the total cohort of first-year international students enrolled with UK HEIs in the 2015/16 academic year, the total net impact of international students on the UK economy was estimated to be £20.3bn. International students contribute an average of £31.3 million of economic benefit to the UK economy per parliamentary constituency – equivalent to £310 per member of the resident population. However, reflecting the concentration of international students in some constituencies, the net economic impact benefit associated with international students amounted to more than £100 million in a large number of parliamentary constituencies.

Read the full report through the link above.