The Impact of International Students on UK Trade of Cultural Goods

Abstract

This study examines the economic impact of the influx of international students on the UK's trade in cultural goods, following the abolition of the post-study work (PSW) visa, which previously allowed graduates from non-EU countries to stay in the United Kingdom for at least 2 years after completing a UK degree. Using administrative enrolment data covering the universe of UK higher education sector spanning from 2008 to 2016, this study provides evidence that the PSW visa abolition corresponded with a 34.61% average reduction in the value of UK's cultural goods export trade to non-EU countries (relative to that to EU countries). In contrast, the PSW visa abolition had no impact on cultural goods imports. Furthermore, the PSW visa abolition had pronounced impacts on cultural goods exports to countries with lower GDP, smaller populations and higher stocks of immigrants. These findings underscore the broader economic implications of policies affecting international student mobility, highlighting the need for careful consideration when avoiding unintended negative consequences on cultural trade.