Today, with a heavy heart, I will share the story of Mahmadul Faruq, a bright student and a very dear friend of mine from Bangladesh who applied for the UNSW as an international student. Unfortunately, Mahmadul was rejected. As he held back his tears, induced by his immense passion for studying abroad, Mahmadul was curious about his predicament. After deep self reflection, he asked me three important questions, each echoing the hopes and fears of countless students like him.

By what standards does the embassy evaluate the potential success of a student studying abroad? When evaluating students from various countries, what factors are taken into consideration? And what are the prospects of obtaining a visa for an international student, particularly one hailing from a developing nation?

It is important to note that international students are boosting local economies and complimenting our labour markets. So why was Mahmadul rejected? As a result, this article will discuss the current trends, as well as the prospective benefits and potential challenges of student immigration in Australia.

[Rafeen is in his penultimate year at Monash University, pursuing a Bachelor of Commerce with a double major in finance and economics. He has a keen interest in macroeconomic public policies and their significant impacts on economic landscapes. Rafeen is dedicated to exploring how these policies can drive substantial changes and improve economic conditions.]

Contemporary economic research demonstrates the significant impacts that the rising number of foreign students are having on host economies. In the last decade, these trends are becoming increasingly recognised by economists and important policymakers. Most notably, international student mobility has more than quadrupled in the last 20 years, that in which reflects the effectiveness of the economic measures that the government has introduced to boost local economies through talent acquisition. As a result, in 2019, International education was Australia's greatest service export, bringing in approximately AUD 37.6 billion [3], through tuition, living expenditures, and part-time employment.

Another important trend is that of the multiplier effect. With every dollar spent by international students in the consumer market, economic output is enhanced by more than the initial investment. The multiplier effect is best witnessed through the housing market, in retail, and the transportation sector. For example, international students contributed 21 billion CAD to the Canadian economy, as well as 170,000 Canadian jobs in 2018 [2]. Beyond financial contributions, their diverse skills and innovative perspectives also positively affected wider labour markets and Canada’s technological sectors.

Most importantly, international students fill skill gaps, especially in STEM fields, making the host country more competitive in the global knowledge economy. These students' abilities significantly improve the host nation's Research & Development sector, often contributing to a greater number of patents and technical breakthroughs [3].

Beyond financial rewards, international students have the ability to improve economic resilience and innovation. Over a million international students contributed $41 billion to the US economy in 2019 [5], and this considerable financial commitment has relieved the financial stress on educational institutions and positively impacted local economies in the forms of student housing and recreation expenditures.

As aforementioned, international students can address vital skills gaps, especially in advanced technology and engineering. For example, approximately 80% of U.S. electrical engineering and computer science PhD applicants are foreign-born and this substantial talent influx helps keep the U.S. ahead in technology and innovation, and emphasises foreign students' strategic economic importance in national progress [6].

Additionally, international students enhance innovation and entrepreneurship. Research suggests 25% of $1 billion U.S. enterprises have an overseas student founder [1]. So, after years of research, these students go on to innovate, patent, and found companies that enhance economic growth and employment.

Educational sectors also benefit from overseas students' perspectives. Both cultural and intellectual diversity fosters innovation and competitiveness, elevating educational institutions globally. These surroundings attract global talent, and further support innovation and progress.

Furthermore, permanent links between international students' home nations and host countries, established by student migration, can significantly boost trade and investment. In this way, international students can promote the effectiveness of global business and their ability to network worldwide [4].

Therefore, an international students' ability to positively contribute to a host country's economy, academia, and industry just goes to show their economic potential. Hence, government programs to attract and retain overseas students will maximise these economic benefits, whilst also fostering an inclusive atmosphere that promotes academic and professional success.

Whilst international students provide several benefits to host economies, they may also present several challenges that need to be addressed. Due to a contemporary phenomenon, best described as “the brain drain”, the home countries of these students are often significantly underdeveloped. For example, the skilled workforce shortages in India and China have the potential to limit long-term economic growth. More specifically, expert shortages in healthcare and engineering, can limit the industries’ ability to grow, which can significantly increase economic inequality in these countries [4].

In addition, academic institutions that rely on International student fees face considerable uncertainty. For example, several colleges in the US that relied on overseas students, lost a lot of much needed revenue during the COVID-19 pandemic.

Another notable challenge is that of the impact of student migration on the housing market. Substantial international student demand can put too much stress on host-country housing. This is further exacerbated by the fact that international students cannot afford residencies in Sydney or Toronto due to not only expensive rent, but by shortages in the rental market. Other hand, locals are also not able to afford homes in regions with large numbers of foreign students due to a 40% increase in the price of rent as a result [3].

It is also important to note that adapting to a new culture far from home is harder than it might seem. Immigration restrictions, language barriers, and inadequate assistance can have significant, and often negative impacts on the mental health of students, as well as their ability to integrate into both academic and social life.

Finally, international students are at risk of  suffering economically. It is often witnessed that richer students are better at overcoming the financial struggles that complement studying abroad, which as a result, can homogenise the spectrum of international students. This can limit global diversity and in turn, a host-country’s future economic success.

It is important that legislation is introduced to address these issues. Strategies can include diversifying university funding, boosting international student aid, or providing equal resources and opportunities for all students.

In the past, the economic potential of international students in Australia have been maximised through several innovative strategies. The Australian government attracts international students with post-study employment visas. The deployment of these visas are based on the level of degree, whether graduates can work in the country for two to four years, and aim to keep talent and tackle critical skill shortages across the country. This strategy enables a phenomenon called the ‘substitution effect’,  when local industries with substantial skill shortages are complemented by the influx of international graduates.

Similarly, Australia’s new income laws may make overseas students work and spend more. As a result, increased product and service demand will help to boost the economy. On the other hand, Australia's international students may also temporarily decrease wages, by oversupplying labour and offsetting current domestic labour shortages. To complement this, Australia’s introduction of strategic minimum wage regulations will better serve the needs of the labour market, by not only minimising underemployment but stabilising average wages. So, as a whole, it can be said that Australia's laws regarding student migration does have the potential to encourage more overseas students to work in Australia, not only better spreading talent but increasing workplace efficiency and overall economic growth.

Other mechanisms to consider may include expanding scholarships, more effective career counselling, language aid, and mental health services, which will allow host-country’s to more successfully retain skilled workers and help international graduates integrate into wider society

Mahmadul's case allows us to better understand an international students' convoluted journey of opportunities and obstacles. As visa officials carefully analyse students' academic credentials, financial stability, as well as their plans to return home, they are put in charge of the dreams of many students who wish to study abroad. This can be incredibly disheartening. Assessments are often an amalgamation of geopolitics, the home country's economy, and most importantly the relationship established between the home and host country’s political and academic institutions. So in this way, students must fight to prove their worthiness with academic dedication, financial preparedness, and a strategy to promote their home country through their international study.

Though incredibly personal, Mahmadul's story resonates with many young intellectuals. As a result, these circumstances call for more understanding, honest, and supportive policies to acknowledge the enormous economic contributions that international students provide to this country, as well as their potential to foster global harmony and collaboration.

[1] Anderson, S. (2018). Immigrants and Billion-Dollar companies. In NATIONAL FOUNDATION FOR AMERICAN POLICY. https://nfap.com/wp-content/uploads/2018/10/2018-BILLION-DOLLAR-STARTUPS.NFAP-Policy-Brief.2018.pdf

[2] Canada, G. A. (2020, December 21). Economic impact of international education in Canada 2017-2018. GAC. https://www.international.gc.ca/education/report-rapport/impact-2018/index.aspx?lang=eng

[3] Department of Education, Skills and Employment. (2020). Effects of international students in Australia. Canberra: Australian Government. Education At A Glance 2019. (n.d.). https://www.oecd-ilibrary.org/education/education-at-a-glance-2019_f8d7880d-en

[4] “International Migration Outlook 2020.” International Migration Outlook | OECD iLibrary, www.oecd-ilibrary.org/social-issues-migration-health/international-migration-outlook2020_ec98f531-en.

[5] “Fall 2020 Survey: Financial Impact of COVID-19 on International Education.” NAFSA, www.nafsa.org/policy-and-advocacy/policy-resources/fall-2020-survey-financial-impact-covid -19-international-education#:~:text=NAFSA%20recently%20released%20new%20economic, billion%20to%20the%20U.S.%20economy

[6] Canada, Global Affairs. “Economic Impact of International Education in Canada 2017-2018.” GAC,21Dec.2020, www.international.gc.ca/education/report-rapport/impact-2018/index.aspx?lang=eng.