How international educational institutions benefit the economy

The education sector is rapidly evolving to keep pace with the global marketplace. In light of this, educational institutions are looking at international expansion and knowledge sharing as a means of growing. A key result of continued investment in this international focus is economic prosperity.

Why is internationalisation important for education?

Sharing knowledge on a global scale is key to enhancing cross-border understanding of academic practices, teaching and learning these practices, and nurturing students’ curiosity.

Collaboration between international institutions advances research and programmes, develops new initiatives, and furthers mutually beneficial partnerships.

For students who study abroad, learning new languages, adjusting to diverse cultural norms and traditions, and navigating new places on their own can help to broaden their horizons, as well as increase their job prospects in an increasingly competitive global marketplace.

How have educational institutions recently internationalised?

In 2024, Mauve Group published an article examining how the education sector benefits from internationalisation. The article noted how over the last three decades, internationalisation within the education sector has thrived as a result of technological developments, as well as the evolution of transportation.

Technological advancements

Studying abroad is a fulfilling opportunity, with the potential to enhance the educational experience and skillset of any participant. However, it is not always a viable option, due to cost, demand, and individual circumstances.

Virtual study abroad programmes have made this incredible opportunity more accessible, allowing an increased number of students to study at foreign institutions and become acquainted with other cultures.

Online learning platforms have revolutionised the education sector’s ability to connect communities and share knowledge across borders. With the increase in online learning as a result of the pandemic, these virtual platforms have been increasingly relied upon to facilitate remote learning.

Videoconferencing software such as Google Classroom, Zoom, Skype, and Teams, as well as online learning platforms such as edX and Udacity, and collaborative tools such as Google Drive and Dropbox have all contributed to the internationalisation of education.

An increase in digital resources has led to teachers, students, and researchers accessing information such as books, papers, and reports online, from anywhere.

Transport infrastructure

As transport infrastructure has advanced, it has benefited the education sector in a number of ways. The reduced cost of air travel fares has enabled greater collaboration between universities and educational institutions.

More and more researchers, teachers, and students can travel abroad to foreign institutions, lectures, and conferences – fostering a culture of cross-border knowledge sharing.

High speed rail and improved bus services have also supported those living further from colleges and universities, to attend through reducing travel times and expense. Services running to and from universities further facilitate this.

The international focus to economic growth pipeline

So, how does an international focus within education lead to economic growth?

Enhanced workforce

As discussed, when educational institutions invest in internationalisation, such as exchange programmes, digital platforms, and international teaching opportunities, students benefit from an enhanced skillset. That makes them valuable and sought-after candidates. These skilled graduates contribute positively to the global economy, as well as to their own home markets.

According to a paper published by the IZA Journal of European Labour studies, titled International Education and Economic Growth, countries with a large number of foreign students who remain there after studying maintain a higher-than-average state growth rate.

The paper also found that while an influx of foreign students may not be economically beneficial at first, it will rapidly begin to positively impact the local economy.

The benefits of foreign students studying abroad, and potentially remaining post-graduating, are often referred to as ‘brain gain.’ In an article for the Princeton Encyclopaedia of World Economy, David M. Hart describes this concept as "...the emigration of advanced students and [how] highly-skilled workers may produce domestic incentives for investment in education and skills that are so powerful that they more than offset the human capital losses incurred as a direct result of the departures."

Innovation

When universities and research institutes collaborate for research purposes, these unions often result in huge strides for innovation and development.

University College Cork lists the manifold benefits of research as including “contributions to social and economic development, national employment and growth, and expansion of existing industry.” So, when international research and development is invested in, the economies of all involved countries benefit.

Universities with an international outlook, provide greater opportunities to both staff and students – exposing them to global knowledge sharing and diverse perspectives. This, in turn, allows individuals to think outside the box; forming groundbreaking ideas and concepts while fostering innovation at every level, often resulting not only in academic and research excellence, but also in business ideas and successful start-ups.

Young entrepreneurs at these institutions then benefit from a global network of contacts and access to the global marketplace, encouraging international trade, collaboration, and investment.

Closing skills gaps

When a country is experiencing a skills gap that is impacting its ability to excel in a certain industry, foreign students and international connections can offer a solution.

For example, Mauve Group recently published a whitepaper  on the AI skills shortage. In this whitepaper, it is noted that global mobility is key to creating and expanding international talent pools.

The whitepaper refers to a report from the European Parliament, which reveals that from 2010 to 2018, the number of EU citizens moving easily between EU nations rose by 50%, thus boosting the overall EU economy by 6%.

This figure proves just how beneficial international mobility can be to the economy. In the instance that a country is experiencing a skills shortage in a particular area, welcoming students in this field can offer a solution, as can collaborating with educational institutions from countries excelling in this field, in order to share knowledge and spur innovation.

How Mauve can help educational institutions on their global journeys

Mauve Group is a global employment solutions provider with over 28 years of experience in the industry. A pioneer of Employer of Record (EOR) services, Mauve Group also offers comprehensive Global Visa & Immigration services, supporting visa and work permit application processes for academics and students going abroad.

In addition, our Consultancy Services, such as Salary Benchmarking allow educational institutions to offer competitive salaries and packages no matter where in the world they are hiring.

Mauve Group is proud to maintain relationships with a number of significant global educational institutions, including Ivy League universities, colleges, schools, and professional development organisations.

Contact our team today, to find out how we can support you.