The number of students studying abroad is increasing worldwide, which may also result in an increase in the number of international students studying in the United States (US). Therefore, this paper aims to investigate the empirical relationship between international students and the economy of the US.
To answer the research question laid out in the introduction, we used a linear model to examine the relationship between GDP per capita and international student enrollment in the US. This is a common approach in economics. Our data was obtained from reputable sources, including Federal Reserve of St. Louis Economic Research Data (FRED) and the Institute of International Education websites. The dataset covers the years from 1948 to 2022, including the 2022/2023 academic year.
In contrast to previous research, this study utilizes empirical tests to obtain the following results: (1) international student enrollment in the US is trending; (2) there is no robust long-run relationship between a change in US GDP per capita and the change in the number of international students. However, some relationships may not be ruled out – international students may contribute to the US economy while international students may not be motivated to come by the state of the US economy and (3) we quantified the impact of international students on the US economy, and we found that the impact is much larger when the number of international students decreases than when the number increases.
Our research has shown that an increase in international student enrollment has a positive impact on the growth rate of US GDP per capita. This suggests that policies aimed at promoting international student enrollment will enhance US GDP per capita growth and should be encouraged. However, it is important to consider the long-term economic benefits of international student enrollment, rather than focusing solely on GDP. These policies should be tailored to the specific country or region, as the effects of international student enrollment may differ. As universities continue to recognize the economic and cultural values that international students bring to their campuses, we anticipate that these numbers will continue to rise, further benefiting the US economy.
