Presentation Information
[SS-9-01]How Much Economic Impact Do International Students Generate?: From Study to Post-Study Retention in Japan
*Yuina Fukumoto, *Hiroshi Ota1 (1. Hitotsubashi University)
Keywords:
economic impact,hosting international students,international student retention
受講者に求められる 事前の知識・経験等
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受講者が受講前に取り組む 事前課題等
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概要
What kind of impact do international students have on the Japanese economy? How much do international students contribute to the economy? It is relatively easy to grasp the economic effects generated by international students during their period of study, such as tuition payments and living expenditures. In fact, in addition to tuition revenues paid to universities and vocational schools, the daily consumption activities of international students constitute a key element supporting local economies. For this reason, the economic contribution of international students has often been discussed primarily in terms of hosting international students.
However, the value created by international students is by no means limited to their economic contributions during their studies. In recent years, Japan has been promoting initiatives—through collaboration among industry, government, and academia—to support international students’ domestic employment, retention, and settlement after graduation. These efforts are driven by the need to address the declining population (workforce) and to strengthen the international competitiveness of industries, and attracting highly skilled foreign talent, i.e., international students, is seen as a potential solution. The economic impact generated when international students secure employment in Japan after graduation, earn a steady income, pay taxes and social insurance premiums, and engage in consumer spending as residents has the potential to substantially exceed the economic contributions generated during their years of study (students).
Nevertheless, discussions regarding hosting international students have traditionally been framed within the contexts of higher education and international exchange policies. As a result, the comprehensive economic impact of international students, including their “post-graduation” contributions, has not been sufficiently examined. In Japan, where the population is declining and aging, the retention of international graduates in the country extends beyond merely supplementing the labor force; it can also help expand the base of taxpayers and social security contributions, as well as maintain and enhance economic vitality through the influx of diverse talent. In this sense, hosting international students has to be reexamined from a broader perspective as a critical issue directly related to the long-term sustainability of Japanese society itself.
Against this backdrop, this session will seek to provide a more comprehensive perspective on the economic contribution of international students by examining not only tuition revenues for higher education institutions and Japanese language schools and consumer expenditures they generate during their studies, but also on factors such as income, tax payments, social insurance contributions, and consumer spending that arise when they remain and work in Japan after graduation.
More importantly, the purpose of this session is not merely to present the scale of the economic impact (contribution) of international students in numerical terms. Rather, using these estimates as a starting point, it aims to reconsider the significance of hosting international students alongside participants, and what statistical data and analytical perspectives are necessary for more precise and empirically grounded evaluations. It is hoped that this session will provide an opportunity to broaden the discussion on hosting international students toward a wider perspective encompassing economics, labor markets, and demographic change.
なし
受講者が受講前に取り組む 事前課題等
なし
概要
What kind of impact do international students have on the Japanese economy? How much do international students contribute to the economy? It is relatively easy to grasp the economic effects generated by international students during their period of study, such as tuition payments and living expenditures. In fact, in addition to tuition revenues paid to universities and vocational schools, the daily consumption activities of international students constitute a key element supporting local economies. For this reason, the economic contribution of international students has often been discussed primarily in terms of hosting international students.
However, the value created by international students is by no means limited to their economic contributions during their studies. In recent years, Japan has been promoting initiatives—through collaboration among industry, government, and academia—to support international students’ domestic employment, retention, and settlement after graduation. These efforts are driven by the need to address the declining population (workforce) and to strengthen the international competitiveness of industries, and attracting highly skilled foreign talent, i.e., international students, is seen as a potential solution. The economic impact generated when international students secure employment in Japan after graduation, earn a steady income, pay taxes and social insurance premiums, and engage in consumer spending as residents has the potential to substantially exceed the economic contributions generated during their years of study (students).
Nevertheless, discussions regarding hosting international students have traditionally been framed within the contexts of higher education and international exchange policies. As a result, the comprehensive economic impact of international students, including their “post-graduation” contributions, has not been sufficiently examined. In Japan, where the population is declining and aging, the retention of international graduates in the country extends beyond merely supplementing the labor force; it can also help expand the base of taxpayers and social security contributions, as well as maintain and enhance economic vitality through the influx of diverse talent. In this sense, hosting international students has to be reexamined from a broader perspective as a critical issue directly related to the long-term sustainability of Japanese society itself.
Against this backdrop, this session will seek to provide a more comprehensive perspective on the economic contribution of international students by examining not only tuition revenues for higher education institutions and Japanese language schools and consumer expenditures they generate during their studies, but also on factors such as income, tax payments, social insurance contributions, and consumer spending that arise when they remain and work in Japan after graduation.
More importantly, the purpose of this session is not merely to present the scale of the economic impact (contribution) of international students in numerical terms. Rather, using these estimates as a starting point, it aims to reconsider the significance of hosting international students alongside participants, and what statistical data and analytical perspectives are necessary for more precise and empirically grounded evaluations. It is hoped that this session will provide an opportunity to broaden the discussion on hosting international students toward a wider perspective encompassing economics, labor markets, and demographic change.