Study: The economic effects of internationalization in higher education

The internationalization of higher education is receiving increasing attention from both an academic and policy perspective. The number of students in higher education who move to another country with the aim of studying there is growing every year. For Flanders, both the number and the share of international students in higher education are increasing.

This study examines the economic consequences of this internationalization trend, with a focus on higher education students who enroll in full-time programs. The study quantifies the costs and benefits for Flanders. The costs and benefits for government funding are also calculated, with a distinction between the costs and benefits during and after the study period.

The results point to a net positive effect of internationalization, with direct benefits exceeding costs 2.6 to 3.3 times. The results indicate a contribution of international students to the economy by a factor of between € 3,072 million and € 4,408 million, which means a net contribution of € 465 - € 613 per inhabitant in Flanders.

The findings confirm the relevance of the impact of international students on the economy, although there are a number of considerations. First, most of the effect is determined by the long-term impact of international students on the economy. Second, it is found that during the studies the net costs are higher than the benefits, but afterwards the benefits predominate. Thirdly, as long as the international students live and work in Flanders, the annual benefits remain positive. The results differ according to the nationality and educational level of international students.