A recent study done by various economists states that international students contribute more to the economy than believed. They also claim that this gives American students a means of experiencing different cultures without having to leave their academic campuses. Additionally, international students encourage more American students to pursue careers in tech-related industries and serve as a substantial source of talent for employers by helping to defray the cost of tuition.
The expansion of commerce by international students benefits American labour and consumers. According to a study by Lena Susanne Specht at the UCD School of Economics, University College Dublin, Total immigration has a significantly beneficial influence on exports: a 10% increase in total immigrants is related to a 2.6% rise in exports from the host country to the origin country.
Specht discovers that despite the fact that many students may only temporarily reside abroad, international students significantly contribute to the growth of trade among those who are foreign-born. Specht investigated the relationship between 2000 and 2018 using data from 34 host countries and 172 origin countries and discovered that increasing the share of international students in total immigration by one percentage point is related to a growth in exports of roughly 1.6%.
Another economist Marina Murat discovered comparable outcomes. Students at universities tend to have strong and persistent social bonds, including friendship, trust, and loyalty to their alma mater. They can increase international economic interactions by using methods for information dissemination and behaviour enforcement. Findings also indicate that Latin American student networks significantly and strongly influence bilateral imports and exports. The OECD [Organisation for Economic Co-operation and Development] economy sees a 10% growth in Latin American students, which boosts bilateral commerce by roughly 3%.
After graduating, international students are eligible to work in Optional Practical Training (OPT) for a year in the US. For students majoring in STEM subjects, OPT can be extended for an additional 36 months. As per Specht, the international students and boosting trade has resulted in Americans gaining additional advantages from having foreign students study on American campuses. This is an open window for students who want to study in the US as the study will ensure that there is a demand for international students on the US campus.
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