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The Economic Impact of International Students Around the World. Presentation by Jason Baumgartner (Indiana University Bloomington), Julie Chambers (Institute of International Education), Robert ...

The Economic Impact of International Students Around the World. Presentation by Jason Baumgartner (Indiana University Bloomington), Julie Chambers (Institute of International Education), Robert Gutierrez (Institute of International Education) at the NAFSA 2010 Annual Conference

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Economic impact session may 2010 Economic impact session may 2010 Presentation Transcript

  • The Economic Impact of International  Students Around the World Jason Baumgartner Indiana University Bloomington Julie Chambers Institute of International Education Robert Gutierrez Institute of International Education NAFSA 2010 Annual Conference June 2, 2010; 1:45‐3:00pm Kansas City, Missouri
  • Presentation Topics IIE Open Doors Data on U.S. International Educational  Exchange International Student Economic Impact in the U.S. Global Student Mobility Trends Questions and Discussion
  • Open Doors 2009 Introduction  The Institute of International Education  (IIE) is one of the largest and most  experienced higher education exchange  agencies in the world Open Doors is an annual statistical survey  conducted by IIE since 1948, with support  from the U.S. Department of State since 1972 4 surveys: International Student Census;  U.S. Study Abroad Survey; International  Scholars Survey; and Intensive English  Programs Survey
  • Open Doors International Student Census Annual survey of U.S. campuses’ international student  enrollments  Respondents: Regionally and nationally accredited U.S.  higher education institutions Timeframe: 2008/09 enrollments Definition: non‐immigrant international students in the U.S.  on temporary visas at the postsecondary level
  • Total International Student Enrollment Trends  The number of international students in the U.S. increased 8% in  2008/09 to a record high of 671,616 international students. 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 58/59 78/79 88/89 08/09 68/69 98/99 53/54 73/74 03/04 63/64 83/84 93/94
  • New International Student Enrollments New international student enrollment increased 16% to  200,460 in 2008/09, following increases of 10% the  previous two years. 200,460 173,121 157,178 Non‐Degree 142,923 131,946 Graduate Undergraduate 2004/05 2005/06 2006/07 2007/08 2008/09
  • Places of Origin of International Students
  • Top 10 Places of Origin of International Students % Change  Rank Place of Origin 2007/08 2008/09 % of Total from 07/08 World Total 623,805 671,616 100.0 7.7 1 India 94,563 103,260 15.4 9.2 2 China 81,127 98,235 14.6 21.1 3 South Korea 69,124 75,065 11.2 8.6 4 Canada 29,051 29,697 4.4 2.2 5 Japan 33,974 29,264 4.4 ‐13.9 6 Taiwan 29,001 28,065 4.2 ‐3.2 7 Mexico 14,837 14,850 2.2 0.1 8 Turkey 12,030 13,263 2.0 10.2 9 Vietnam 8,769 12,823 1.9 46.2 10 Saudi Arabia 9,873 12,661 1.9 28.2
  • Top Five Places of Origin, Recent Trends India (103,260) 100,000 China (98,235) 80,000 South Korea (75,065) 60,000 Japan (29,264) 40,000 Canada (29,697) 20,000 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09
  • U.S. Geographical Distribution The top 5 host states (California, New York, Texas, Massachusetts and Florida)  hosted 43% of international students in 2008/09.
  • Institutional Type Doctorate institutions host the largest number of international  students (59% of the total). 400,000 Academic Level: Undergraduate Graduate 300,000 Non‐Degree/OPT 200,000 100,000 0 Doctorate Master's Baccalaureate Associate's Specialized Institutions Institutions Institutions Institutions Institutions
  • Top 10 Host Institutions Rank Institution State Total 1 University of Southern California CA 7,482 2 New York University NY 6,761 3 Columbia University NY 6,685 4 University of Illinois ‐ Urbana‐Champaign IL 6,570 5 Purdue University ‐ Main Campus IN 6,136 6 University of Michigan ‐ Ann Arbor MI 5,790 7 University of Texas ‐ Austin TX 5,703 8 University of California ‐ Los Angeles CA 5,590 9 Boston University MA 5,037 10 Michigan State University MI 4,757 TOP 10 TOTAL (9% of all int’l students): 60,511
  • Fields of Study 39% of international students are studying the fields of Business  & Management and Engineering, the top 2 fields of study. Bus ines s  &  Undec lared 3% Management 21% Humanities  3% Engineering 18% Educ ation 3% Agric ulture 1 % Phys ic al & Life  Sc ienc es 9% Other 11% Soc ial Intens ive Sc ienc es  Englis h Math & Health      4% 9% Computer Arts 5% 8% 5%
  • http://opendoors.iienetwork.org
  • NAFSA International Student  Economic Impact for 2008‐09: $17.6 Billion http://www.nafsa.org/publicpolicy/default.aspx?id=17174
  • NAFSA International Student  Economic Impact: The Algorithm
  • NAFSA International Student  Economic Impact: Enrollment Data Compute economic impact only for students reported in IIE Open Doors.  Institutions that do not provide information are not represented.  Conduct separate analysis for the undergraduates and graduates, and  then consolidate the result set in the final report. Students on optional practical training (OPT) are counted in Open Doors,  and included in the enrollment counts on the reports, but they are  exempted from the analysis. Note: Enrollment reports represent peak enrollment, and not necessarily  enrollment levels throughout the year.
  • NAFSA International Student  Economic Impact: Expense & Funding Data Tuition & fees and living expenses are derived from Wintergreen Orchid   (formerly from Peterson’s or College Board) data collected on surveys  completed by institutions every year.   Students at institutions reporting extremely low values or zero values for  expenses are estimated to have expenses based on a weighted average  for the institution’s state location and Carnegie type. Percentage of U.S. funding for a student is based on Open Doors primary  source of funding with the following filters: – (1) whether a student is an undergraduate or graduate – (2) the institution type based on Carnegie codes.
  • NAFSA International Student  Economic Impact: Dependent Data Percentage of married students separately for undergraduates and graduates based on IIE Open Doors and a 85% probability they are in the  United States. A 60% probability of a child per couple. A spouse increases the living expenses by 25% and a child by an  additional 20%. Dependents living expenses total $434 for 2008‐09 and account for 2.5%  of the overall economic impact.  
  • NAFSA International Student  Economic Impact: Top 10 Cities CITY STATE STUDENTS IMPACT New York NY 28,471 $880,204,000 Boston / Cambridge MA 21,357 $738,072,000 Los Angeles CA 16,569 $518,500,000 Chicago IL 12,878 $395,321,000 Philadelphia PA 9,646 $314,041,000 Washington D.C. DC 8,485 $304,122,000 San Francisco CA 8,526 $278,850,000 Houston TX 13,014 $272,135,000 Atlanta GA 7,339 $182,193,000 Pittsburgh PA 6,548 $181,979,000 TOTALS: 132,833 $4,065,417,000
  • NAFSA International Student  Economic Impact: Top 10 Congressional Districts NAME PARTY DISTRICT STUDENTS IMPACT Michael Capuano Democrat MA – 08 20,604 $705,354,000 Jerrold Nadler Democrat NY – 08 13,605 $461,374,000 Eleanor Norton Democrat DC 8,485 $304,122,000 Henry Waxman Democrat CA – 30 9,339 $303,221,000 Charles Rangel Democrat NY – 15 9,237 $257,979,000 Chaka Fattah  Democrat PA – 02 7,485 $254,999,000 Diane Watson Democrat CA – 33 8,196 $242,877,000 Bobby Rush Democrat IL – 01 6,320 $215,012,000 Maurice Hinchey Democrat NY – 22 7,320 $204,667,000 Sheila Jackson Lee Democrat TX – 18 10,143 $204,533,000 TOTALS: 100,734 $3,154,138,000
  • NAFSA International Student  Economic Impact: Currency Comparison
  • NAFSA International Student  Economic Impact: Impact of Currency According to this analysis the average international student would need  to spend less than 21,000 Euros (E.U.) or less than 18,000 Pounds (U.K) in  order to pay less than the $26,000 impact they bring to the U.S. The impact of the global financial crisis has resulted in a strengthened  U.S. dollar and a reversal of recent currency trends.  This is furthered by  current economic volatility in EU countries such as Greece.
  • NAFSA International Student  Economic Impact: Capacity, Cost, and Community Capacity: There is a large U.S. capacity as international students comprise less than 4%  of the overall higher education market.  International students in Australia, United  Kingdom, and other European countries currently comprise 15% ‐ 20% of the higher  education population. Cost:  Students will consider the value versus the large expense of higher education.   The caliber of the institution and the competitiveness of admissions may help drive up  value for such institutions. Community:  There is an improved perception of the U.S. while recent events in other  countries, such as Australia, have generated some negative perceptions that have  directly impacted the flow of international students to those countries.  This reinforces  the value of the cross cultural experience and the impact those experiences may have in  the decision making process for international students.
  • NAFSA International Student  Economic Impact: Questions to Consider Questions to consider: Will the U.S. dollar continue to strengthen against other currencies or go back down  when various global economic conditions (i.e. debt problems in EU) improve?  What  impact will currency play in the future trends of international student enrollments? How might currency trends change U.S. students decisions about study abroad?   How will the projected increase of U.S. students entering college further increase the  competitiveness of programs in the U.S. while the currency markets find a new  baseline as the global economy stabilizes? How might cross cultural experiences influence international enrollment and what role  should universities take to enhance that experience?
  • Global Student Mobility Trends Robert Gutierrez Senior Manager of Research and Evaluation Institute of International Education (IIE) rgutierrez@iie.org
  • International Student Population Growing International Students Worldwide,  Selected Years 1995 ‐ 2007 3.5 Number of students  3.0 2.5 (millions) 2.0 1.5 1.0 0.5 0.0 1995 2000 2001 2002 2003 2004 2005 2006 2007 Over 3 million students are being  By 2025, almost 8 million  educated outside their home  students may be studying  countries, a 59% increase since  internationally. 2000. Sources: Indicator C3, OECD Education at a Glance 2007, 2009 UNESCO Global Education Digest 2009
  • Host Country Shares of International Students 2001 2008 Worldwide: 2 million students Worldwide: 3 million students U.S.: 547,000 students U.S.: 624,000 students  U.S. U.K. U.K. 21% 13% 11% U.S. 28% Germany  France 9% 9% France 7% Germany Australia  8% 4% Japan 3% Australia Spain 2% All others 7% All others Belgium  28% China 34% 2% Canada 6% Japan 4% 4% Source: Atlas of Student Mobility (data period: 2001, 2008)
  • How “international” are the leading host countries’ campuses? The 671,616 international students in the U.S. comprise less than 4%  of total U.S. higher education enrollment, with only 172  institutions  hosting 57% of all international students in the U.S. Top Countries' International Enrollment as a Percentage of Total Higher Education Enrollment, 2007‐08 22.5% 16.3% 12.0% 12.0% 3.5% 0.8% U.S. U.K. France Germany Australia China
  • Setting Targets: The Emerging Hosts Category Target Current Status China 300,000 by 2020 195,000 (Atlas, 2008) Japan 300,000 by 2020 123,000 (Atlas, 2008) Jordan 100,000 by 2020 21,500 (UNESCO, 2006) Malaysia 100,000 by 2010 24,400 (UNESCO, 2006) Singapore 100,000 by 2015 80,000+ (Singapore Education)
  • The Atlas of Student Mobility: Introduction What is Atlas: a collaborative network of organizations sharing mobility data Began in 2003; a recognized need for better understanding of data in a cross-country context Updated on a rolling basis based on each country’s collection cycle Data reported include: country of origin, total and international student enrollment population, leading destinations for outbound students Other resources, partner publications, Global Education in the News archives
  • Online at Atlas of Student Mobility atlas.iienetwork.org
  • Country Profile Page: CHINA
  • Economic impact • Australia – International education activity contributed A$17.2 billion in export income to the Australian economy in 2008-09. – The higher education sector generated $9.5 billion in export income (57.1% of total on-shore earnings). – Australia receives the most int’l. students from China, India, Malaysia, Singapore and other SE Asian countries Source: AEI. Export Income to Australia from Education Services, 2008-09 from http://www.aei.gov.au/AEI/PublicationsAndResearch/Snapshots/20091110_pdf.pdf
  • Economic impact • The UK – According to British Council, international students contribute more than £8.5 billion to the UK economy. Source: British Council, Annual Report 2007, p.6, from http://www.britishcouncil.org/annual-report/PDF/AnnualReport_2007-08.pdf. • Canada – Has attracted a greater share of international students over the past decade, whose net contribution to the economy is worth C$5 billion. Source: Katz, E. (2009). Imagine, Cooperative Branding! International  Educator Regional Spotlight 2009. Washington, DC: NAFSA: Association of  International Educators.
  • Economic impact • Japan – Of incoming international students in Japan in 2007, 89.7 percent were privately financed international students, 8.5 percent were Japanese government sponsored students, and 1.8 percent were foreign government sponsored students. Overall, 91.5 percent of incoming international students in 2007 brought funding from international sources to Japan. – The number of privately financed incoming international students in Japan has more than doubled from 41,390 in 1998 to 106,297 in 2007, while the number of foreign government sponsored incoming international students has steadily increased in the same period, from 1,585 in 1998 to 2,181 in 2007. Source: JASSO, Support Programs for International Students, p.1, from http://www.jasso.go.jp/about_jasso/documents/outline08_04.pdf.
  • Economic impact • New Zealand – The economic impact of export education in New Zealand excluding offshore education earnings is approximately $2.1 billion for 2007/08. This is an increase from earlier figures for estimating economic impact of export education that include offshore education earnings. These figures were $545 million in 1999 and $1.3 billion in 2001. Source: The Economic Impact of Export Education, p. 1, from http://www.educationcounts.govt.nz/__data/assets/pdf_file/0007/35368/ EconomicImpactReport08.pdf)
  • www.iie.org Five Ways to Connect with IIE Information on IIE programs & services facebook.com/IIEglobal Latest updates on IIE news & events twitter.com/IIEglobal Quick alerts on international education news & trends www.iienetwork.org Resources for international education professionals opendoors.iienetwork.org Data on academic mobility to and from the U.S.
  • Questions and Discussion Jason Baumgartner Indiana University Bloomington jlbaumga@indiana.edu Julie Chambers Institute of International Education jchambers@iie.org Robert Gutierrez Institute of International Education rgutierrez@iie.org NAFSA 2010 Annual Conference June 2, 2010; 1:45‐3:00pm Kansas City, Missouri