The increasing adoption of advanced technology together with rising levels of education[1] in developing countries is contributing to a global convergence of knowledge.  This convergence is further reinforced by international students who over the course of their lives acquire education and then work in countries other than the ones in which they were born.  It is estimated that the number of international students in higher education will triple from 2000 to 2025, rising to a total of 7.2 million.[2]  While a fair proportion of these international students will eventually settle in the country where they received their higher education, the remainder will return home further contributing to the global convergence of knowledge.  As this knowledge base continues to grow in developing countries, the demand for more international students – and by extension, more migrants to offset labour shortages in industrialized countries – will also grow.

This study analyzes the economic benefits associated with (i) international students currently studying in Nova Scotia; (ii) recruiting additional students to the province; and (iii) retaining those that wish to remain in the province upon graduation.  It argues that international students, and those amongst them that are potential migrants, represent important opportunities for growth in Nova Scotia.This study primarily uses survey data on expenditures made by post-secondary international students in Nova Scotia.  It uses alternative estimates of the spending multiplier to determine the contribution of international students to the province’s economy.  It also provides estimates of the long-run contribution of international students that are potential migrants to the province’s economy.   

The findings of this study confirm that international students make a significant positive impact on the economy.  They are particularly important for a region facing demographic challenges since international students and those amongst them that are potential migrants tend to offset the negative impact of a declining population and hence impending labour shortages on long run economic growth.

JEL Classification:             I22, O10, O40 (Primarily Micro)
Keywords:           Economic Development, Economic Growth, Education, Expenditure, International Students