In many parts of the world, education is a significant service export industry. After Sweden’s introduction of tuition fees for non-EEA students in 2011/12, it has been unknown what this target group’s economic impact has amounted to. The Swedish Institute has commissioned the report ‘The economic impact of international students’ with the intention of better understanding the impact international students have on the Swedish higher education and labour force. The study looks at the period between the introduction of tuition fees in 2011/12 and the academic year of 2020/21.
Every year, international students contribute between 3.5 and 4 billion SEK annually (approximately EUR 322 and 370 million), making the education industry a sector comparable with Sweden’s music export which contributed 2,7 billion SEK in 2019. The so-called “free-mover students” (students who study abroad on their own initiative and not as a part of a study abroad programme or bilateral agreement) stand for 90 per cent of this contribution.
– The study shows the positive impact of international students both in financial terms and through more qualitative aspects such as the contribution to a more enriched culture and improved innovation capacity. Furthermore, they contribute with diversity and new perspectives in the classrooms, which amounts to increased quality in both higher education and research. Hence, it is paramount that we continue investing in recruiting international students to Sweden, says Madeleine Sjöstedt, Director General of the Swedish Institute.
International students contribute both during and after their studies
Taking a closer look at international students in Sweden, the study extends to analyse the impact of those who have graduated and established themselves on the labour market. Between 2013 and 2021, this specific group contributed with a well-educated labour force, and a yearly average of between 700 and 1 300 million SEK in income tax revenues. When assessing their consumption, it has been estimated to be between 800 and 1 400 million SEK, annually.
Aside from the economic impact, there are several other benefits that international students who establish themselves in the Swedish labour market bring. For example, they provide important competencies in areas where Sweden has a shortage, which in turn, contributes to increasing Sweden’s competitiveness.
Read the full study here:The economic impact of international students
Background
The Swedish Institute (SI) is a public agency and expert authority on the image of Sweden globally. We continuously work with research to better understand how Sweden is relevant for international target groups and how to increase interest in Sweden as a knowledge nation and a study destination, through digital and physical marketing efforts. SI commissioned the study The Economic Impact of International Students in 2021 and it was implemented by the consulting firm WSP. The study was carried out following the mission of a collaboration platform established between SI and key actors in Swedish higher education: the Swedish Council for Higher Education, the Swedish Higher Education Authority, Swedish Research Council and Vinnova – Sweden’s innovation agency. Their main aim is to facilitate further internationalisation of higher education.
For more information and media enquiry, call +46 (0) 8 410 186 72.