Economic impact of international education in Canada – 2017 update
4. International students and Canada’s export
Because international student expenditures represent revenue from goods and services from overseas, this representation of international student spending is an export of international education services from Canada.
In this section, we compare the value of international education services, as measured by total spending in Canada, with the total export of services and merchandise from Canada. We also provide a comparison of the total value of international student spending by the top 10 source countries with the value of Canada’s exports to these countries.
In Canada’s official account of the balance of payment, spending by international students is captured under “education-related personal travel,” which is part of Canada’s total export in services. We believe that Statistics Canada’s estimate of education-related personal travel may be underestimating the true value of total spending by international students and therefore present an alternate way of evaluating such spending in this report. For a detailed description of how to reconcile these two sets of estimates, please refer to Appendix 4.
4.1. Spending by international students and Canada’s trade
In 2015, the total value of international student spending in Canada was over $12.8 billion. When compared with Canada’s total export of services in 2015, which includes spending by international students and was worth $102.3 billion, international student expenditures equal 12.5% of the total value of Canada’s service exports. The total value of international student spending in 2016 was over $15.5 billion in Canada, an increase of 21.2% from 2015. By contrast, Canada’s total export of services in 2016 grew 5.0% from the year before.[20] The value of international student expenditures accounted for 14.5% of Canada’s total value of export of services.
In comparison, the total value of international student spending was almost $11.4 billion in 2014. When compared with Canada’s total export of services in 2014, $95.7 billion, international student expenditures equalled 10.9% of the total value of Canada’s service exports.
Canada is known for its exports from resource sectors like oil, natural gas, logging and forestry. Few people realize that international student spending also makes a substantial contribution. In 2015, the total amount of international student spending surpassed the value of Canada’s exports in liquefied petroleum or hydrocarbon gases ($11.8 billion), helicopters, airplanes and spacecraft ($10.6 billion), lumber (>6mm) ($8.9 billion) and wheat ($7.9 billion). The total amount of international student spending in 2015 equalled about 2.4% of the total value of Canada’s merchandise exports. This information is depicted in tables 10 and 11.
| Exports of Goods ($billions) | |
|---|---|
| Crude Petroleum Oils and Oils Obtained from Bituminous Minerals | $64.1 |
| Motor Vehicles For Passenger Transport (Other than Buses/Public Transport) | $57.3 |
| Gold | $15.9 |
| Preparations Of/Non-Crude Petroleum Oils and Oils Obtained from Bituminous Minerals | $14.6 |
| Motor Vehicle Parts (Excl. Body, Chassis and Engines) | $14.0 |
| International Education Services | $12.8 |
| Liquefied Petroleum or Hydrocarbon Gases | $11.8 |
| Helicopters, Airplanes and Spacecraft | $10.6 |
| Lumber (Thickness >6mm) | $8.9 |
| Medicaments - Put Up in Measured Doses or Packed For Retail Use | $8.5 |
| Wheat | $7.9 |
| Total Merchandise Exports | $524.0 |
Source: RKA; Industry Canada
| Value | International Student Spending as % of Exports | |
|---|---|---|
| Total Annual Spending – All International Students | $12.8 billion | n/a |
| Canada’s Export in Services | $102.3 billion | 12.5% |
| Canada’s Export in Merchandise | $524.0 billion | 2.4% |
Source: RKA; Statistics Canada Table 376-0036; Industry Canada
In 2016, the total amount of international student spending surpassed the value of Canada’s exports in lumber (>6mm) ($10.3 billion), liquefied petroleum or hydrocarbon gases ($10.3 billion), helicopters, airplanes and spacecraft ($8.2 billion), and wheat ($6.0 billion). Total international student spending in 2016 equalled about 3.0% of the total value of Canada’s merchandise exports. This is shown in tables 12 and 13.
| Exports of Goods ($billions) | |
|---|---|
| Motor Vehicles For Passenger Transport (Other than Buses/Public Transport) | $64.7 |
| Crude Petroleum Oils and Oils Obtained from Bituminous Minerals | $52.4 |
| Gold | $16.5 |
| International Education Services | $15.5 |
| Motor Vehicle Parts (Excl. Body, Chassis and Engines) | $14.1 |
| Preparations Of/Non-Crude Petroleum Oils and Oils Obtained from Bituminous Minerals | $10.8 |
| Lumber (Thickness >6mm) | $10.3 |
| Liquefied Petroleum or Hydrocarbon Gases | $10.3 |
| Medicaments - Put Up in Measured Doses or Packed For Retail Use | $9.8 |
| Helicopters, Airplanes and Spacecraft | $8.2 |
| Turbo-Jets, Turbo-Propellers and Other Gas Turbines | $6.9 |
| Total Merchandise Exports | $517.0 |
Source: RKA; Industry Canada
| Value | International Student Spending as % of Exports | |
|---|---|---|
| Total Annual Spending – All International Students | $15.5 billion | n/a |
| Canada’s Export in Services | $107.4 billion | 14.5% |
| Canada’s Export in Merchandise | $517.0 billion | 3.0% |
Source: RKA; Statistics Canada Table 376-0036; Industry Canada
4.2. The trade impact of international students from top 10 source countries
In the international student market, the top 10 source countries account for almost three quarters of the overall number of students.[21] China, India and South Korea are the top three source countries for long-term students. Japan and Brazil are the top two source countries for short-term students.
In terms of source countries, the number of students from China accounted for about a third of the total number of the long-term students. In fact, students from the top three source countries (China, India and South Korea) accounted for a little over half of all long-term students.
Brazil and Japan are the two top countries for students studying in short-term language training programs in Canada. Students from the top 10 source countries accounted for over 86% of all such students. Detailed information on source countries can be found in appendices 5 and 6.
In 2015, the total value of international student spending was over $12.8 billion. The value of spending by students from the top 10 countries was $9.6 billion. By 2016, the value of such spending from the top source countries increased to $11.7 billion, up 22.9%. Among these top 10 international student source countries, most of the increase in spending was by students from India ($1.1 billion increase in spending in 2016 over 2015) and China (up by $715.2 million). In terms of percentage increase, spending by students from three countries stood out: India (up 65.7%), Vietnam (up 56.3%) and Brazil (up 18.3%).
For the top 10 source countries, in 2015, the value of international education services, as measured by the total spending by students from these countries, represented 14.5% of total service exports and 2.1% of Canada’s merchandise exports to these countries. By 2016, the value of total spending by international students from these countries represented 17.2% of total service exports and 2.7% of Canada’s merchandise exports to these countries.
| Value | International Student Spending as % of Exports | |
|---|---|---|
| Total Annual Spending –International Students from Top Ten Source Countries | $9.6 billion | n/a |
| Canada’s Export in Services to Same Countries | $66.1 billion | 14.5% |
| Canada’s Export in Merchandise to Same Countries | $448.2 billion | 2.1% |
Source: RKA; Statistics Canada Table 376-0036; Industry Canada
| Value | International Student Spending as % of Exports | |
|---|---|---|
| Total Annual Spending – International Students from Top Ten Source Countries | $11.8 billion | n/a |
| Canada’s Export in Services to Same Countries | $68.5 billion | 17.2% |
| Canada’s Export in Merchandise to Same Countries | $442.0 billion | 2.7% |
Source: RKA; Statistics Canada Table 376-0036; Industry Canada
[20] Canada’s export in services reported in CANSIM table 376-0108 - International transactions in services, by category, (dollars).
[21] The top 10 source countries are ranked based on the number of long-term international students in Canada in 2015 and 2016. These can be found in table 45 and 61 in appendices 5 and 6.
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