A significant influx of Chinese students into American universities over the past two decades has not only fueled the expansion of graduate programmes and STEM fields but has also substantially benefited local economies and domestic enrolments, according to a recent working paper.
Chinese Students Drive Programme Expansion and Domestic Enrolment
The research, published by the prestigious National Bureau of Economic Research (NBER), directly challenges concerns that international students displace American ones. The study found that for every additional Chinese master's student, American master's enrolments increased by approximately 0.26. This counterintuitive finding suggests that revenue from international students helps subsidise costs, allowing universities to expand their offerings and keep tuition more accessible for domestic students.
Researchers from the University of California, San Diego and Stanford University analysed comprehensive data to reach these conclusions. They tracked Chinese graduates using two key datasets: Chinese college admissions records from 1999 to 2011 and the US government's Student and Exchange Visitor Information System (SEVIS). Their analysis captured a period of explosive growth, where the number of Chinese students in US universities surged from around 62,000 in 2005 to over 317,000 by 2019.
This period coincided with a massive expansion of higher education in China itself, where total college enrolment rocketed from about 1 million to over 8 million. Gaurav Khanna, an economics professor at UC San Diego and co-author of the study, explained the mechanism to Higher Ed Dive: enrolling more Chinese students provides universities with the resources to create and grow new master's programmes, particularly in STEM (Science, Technology, Engineering, and Mathematics) fields. This expansion, in turn, creates more capacity for American and other international students.
Substantial Economic Ripple Effect in College Towns
The positive impact of this student migration extends far beyond campus boundaries, significantly boosting local economies. The NBER paper highlights that Chinese students contribute to regional economic growth through their spending on essentials like housing, transportation, and dining.
"You see more job growth, even outside the university," Professor Khanna noted. This spending supports local businesses and creates employment opportunities in college towns across the United States. Fanta Aw, CEO of NAFSA: Association of International Educators, supported these findings, stating that such major demographic shifts in education access inevitably have global ripple effects.
Findings Amidst a Contentious Political Climate
The release of this evidence-based paper comes at a time when international students, particularly those from China, face heightened scrutiny from some US policymakers. Under the previous Trump administration and among some current lawmakers, there have been proposals for stricter visa rules citing espionage and intellectual property theft concerns.
However, the NBER study provides robust data demonstrating a clear positive ripple effect. It shows that the presence of Chinese students has been a net benefit for US higher education institutions, their American students, and the economic health of their surrounding communities. The research underscores the complex, mutually beneficial relationships fostered through global educational exchange.
