71st International Atlantic Economic Conference

March 16 - 19, 2011 | Athens, Greece

The Economic Impact of Post-secondary International Students in Atlantic Canada

Thursday, 17 March 2011: 14:30
Fazley K. Siddiq, Ph.D. , School of Public Administration, Dalhousie University, Halifax, NS, Canada
Warren Nethercote, Ph.D. , School of Public Administration, Dalhousie University, Halifax, NS, Canada
Judy Baroni, Masters , School of Public Administration, Dalhousie University, Halifax, NS, Canada
Jeannette Lye, Masters , School of Public Administration, Dalhousie University, Halifax, NS, Canada
This study used a survey of international students and data from government and university sources.  The initial economic impact of international students in Atlantic Canada was found to be $376 million in 2009-2010, including an initial injection of $175 million of new money to Atlantic Canada.  The total economic impact of international students was $565 million in 2009-2010 after application of the spending multiplier. The direct spending by international students averaged $29,000 during the same period.  International students spent $2.64 (of which $1.91 was new money injected into the economy) in Atlantic Canada for every dollar spent by the four provincial governments for their education and health care.  This ‘return on investment’ varied from province to province in Atlantic Canada due both to variations in spending from province-to-province by students and variations in spending from province-to-province by governments.

Generally, international students had positive impressions of Atlantic Canada, and 40 percent of survey respondents expressed interest in permanent residence, suggesting that this group was a good candidate source of future immigrants who could help to address the region’s demographic challenges.  Citizenship and Immigration Canada indicates that 39.5 percent of foreign students transition to foreign worker status nationally, but that only 15.6 percent transition to permanent resident status. There appear to be opportunities to improve the retention rate for those international students who choose to work in Canada after completing their education.

A cross-jurisdictional review revealed a competitive international market for international students, in which Canada is ranked seventh as an academic destination and attracts only a four percent share of international students.  Across the globe, international students are valued, both as economic assets and as potential future immigrants who will be well-prepared to contribute to knowledge-based economies. Australia, Belgium, Canada, and the United Kingdom are the only nations charging differential tuition fees to international students.  All others treat international and native students equally, in recognition of their benefit culturally and economically, and to maximize opportunities to attract future immigrants. Immigrants augment the stock of human capital which is diminishing in some jurisdictions, including certain parts of Atlantic Canada.