New IW study commissioned by DAAD
International students not only enrich the German higher education landscape by contributing to the internationalization of science and research — they also make a significant contribution to Germany's economic development. This is shown by the current Study by the Institute of German Economics (IW) on behalf of the DAAD on the topic of “Economic Effects of International Students”.
Economic contribution
The study concludes that international students generate considerable economic benefits: With a medium stay rate, a class of international students contributes around eight times more to public budget revenue than the state invests in them on balance — equivalent to around 15.5 billion euros per year.
Strengthening Germany as a business location in the long term
It becomes clear that international students stabilize Germany's economic growth potential in the long term. In view of demographic change, the annual growth rate of gross domestic product (GDP) will fall by 0.5 percentage points over the next ten years. According to the study, around 20 percent of this decline can be offset by the immigration of international first-year students alone. This is also a strong signal for the labor market, as it shows that international students not only contribute to value creation in the short term through consumption and tuition fees, but also strengthen Germany as a business location in the long term.
Transnational education projects
Transnational Education Projects (TNB projects) such as the German Jordanian University (GJU) exemplify how global networks can be built up through international university cooperation and at the same time train highly qualified specialists. The practice-oriented course with an integrated year in Germany prepares students specifically for the international job market. Many graduates then choose to work in Germany — whether in companies, in research institutions or as founders — and bring with them intercultural competence and innovative spirit.
Social enrichment
When it comes to this topic, however, it is important not to look at international students from an economic point of view alone. They bring new perspectives, cultural diversity and important impulses for social exchange and mutual understanding. As members of our society, they enrich social and academic life and promote openness, tolerance and global connections — central values of a vibrant, democratic society.
Click here for the full version of the IW study
Click here for the short version of the IW study
