| Practice area: | Education and Labour Markets |
|---|---|
| Client: | University of the Arts London |
| Published: | 12 September, 2023 |
| Keywords: | economics of education higher education 2023 Public Policy |
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Given the significance of international students as a source of export revenues and following our recent previous study of the benefits and costs to the UK economy associated with all international students (across all subjects (here)), we were commissioned by the University of the Arts London to estimate the benefits and costs to the UK economy associated with international higher education students studying Arts and Design subjects in the UK. Using a similar methodology as our recent study, this analysis focuses specifically on the cohort of students who started HE qualifications in Design and Creative and Performing Arts subjects in the UK in 2021/22.
Key findings
- The total net impact on the UK economy of the cohort of first-year international Arts and Design students enrolled at UK HEIs in the 2021/22 academic year was estimated at approximately £2.25 billion across the duration of their studies.
- The estimated total benefit to the UK economy from 2021/22 first-year international Arts and Design students was approximately £2.45 billion, while the estimated total costs were £200 million. This implies a benefit-to-cost ratio of 12.2. This is higher than the corresponding estimated average benefit-to-cost ratio across all international students in 2021/22 (which stood at 9.4).
- The net economic impact per student was estimated to be £143,000 per EU domiciled Arts and Design student (compared to £125,000 across all EU domiciled students), and £112,000 per non-EU Arts and Design student (compared to £96,000 for all non-EU domiciled students). In other words, every 7 EU students and every 9 non-EU in Arts and Design subjects generate £1m worth of net economic impact for the UK economy over the duration of their studies.