EXPLORING THE IMPACT OF INTERNATIONAL STUDENT IMMIGRATION ON THE UK ECONOMY: BENEFITS AND CONSEQUENCES

  • 0 Review(s)

Product Category: Projects

Product Code: 00008579

No of Pages: 59

No of Chapters: 1-5

File Format: Microsoft Word

Price :

$20

ABSTRACT

The purpose of this study was to investigate the impact of student immigration on the economy of the UK with special emphasis on the benefits and consequences. Using international students in Northumbria University, Newcastle as case studies the researcher interviewed respondents and carried out a qualitative analysis of the benefits and consequences of immigration using thematic analysis. The results of the study showed that the benefits of immigration outweigh its negative impacts on the UK economy. The benefits of immigration for the national economy as identified by this study include skilled service delivery, increased aggregate demand and an increase in GDP. The slight increase in the price of housing was the only negative effect associated with student immigration in the United Kingdom. Following the above findings the study recommends that the age-old mass media habit of presenting immigration as an unnecessary burden to host countries should be discouraged by the government and other relevant authorities, and consideration should be made for the creation of low-housing areas, especially, for foreign students coming into the UK considering the observed difficulties of securing good shelter following their arrival in their cities of study, and the just allocation of welfare benefits with special consideration for immigrants in light of their economic contribution to society should be given serious attention in the formulation and implementation of welfare policies.

 

 

 

 

 

TABLE OF CONTENTS


Chapter One

1.0. Introduction …………………………………………………………………………7

1.1. Background to the study…………………………………………………………….7

1.2. Contribution to knowledge……………………………………………………...….12

1.3. Research aims/objectives…………………………………………………………...12

1.4. Research questions……………………………………………………………….....13

1.5. Thesis structure/outline……………………………………………………………..13


Chapter Two

2.0 Introduction….............................................................................................................15

2.1 Conceptual Review.....................................................................................................15

2.2 Theoretical Review………………………………………………………………….17

2.2.1. Theories and Models of Migration….....................................................................17

2.3 Empirical Review …………………………………………………………………..20

2.3.1 Immigration and GDP…………………………………….…………………   .....20

2.3.2 Education and Immigration ………………………………………………   ….....22

2.3.3 Immigration and Social Welfare………………………………………………......23

2.3.4 Immigration and Housing …………………………………………………….......25

2.4 Summary of Review……………………………………………………………...…27


Chapter Three

3.0 Introduction……………………………………………..…………………….…… 28

3.1 Philosophy of the Study ……………………………………………………………28

3.2 Research Approach ………………………………….……………………………. 29

3.3 Ethical Approval ……………………………………………………….………….29

3.4 Research Methods …………………………………………………………………29

3.5.1 Study Location …………………………………………………………………..29

3.5.2 Qualitative Methods …………………………………………….……………….30

3.5.3 Primary Data Collection ………………………………………………………....31

3.5.4 Procedure for Interview……….………………….………………………………31

3.5.5 Secondary Data…………………………………………………………………...31

3.6 Method of Data Analysis…..…………………………….…………………………32


Chapter Four

4.0 Introduction ………………………………………………………………………...33

4.1 Interview Completion Rate ………………………………………………………...35

4.2 Study Themes ……………………………………………………………………....37

4.3 Results ……………………………………………………………………………...38

4.4 Specific Findings …………………………………………………………………...46

4.5 Chapter Summary …………………………………………………………………..50


Chapter Five

5.0 Introduction……….………………………………………………………………...51

5.1 Summary ………….………………………………………………………………...51

5.2 Implication ……………………………………………………………………….....54

5.3 Study Limitations …………………………………………………………....……...55

5.4 Recommendation …………….……………………………………………………...55

5.5 Suggestion for Further Study ……………………………………………………......55

Bibliography ……………………………………………………………….…………....58

Tables/Charts/Diagrams

Table 1 Generating Interview Questions ………………………………………………33

Table 2 Interview Completion Rate ……………………………………………………35

Chart 1 Interview Completion Rate ……………………………..……………………. 37

Fig 1 Study Themes …………………………………………..………………………. 38

 

 

 


 

 

CHAPTER ONE

1.0 Introduction

This thesis focuses on exploring the impact of international student immigrants on the UK economy in terms of benefits and consequences. This chapter focuses on the background and purpose (aims and objectives) for the study, the structure/outline, the content of each chapter, and an overview of the envisaged contribution of this study to existing knowledge on the economic impact of student immigrants.


1.1 Background to the Study

Immigration, defined as the practice of taking up permanent residency in foreign countries (Parry, 2023), has become a major feature of the 21st century. Arguably, in every country of the world, certain percentages of its populace owe their origin by birth to countries other than the ones they currently live in. According to the United Nations International Organization for Migration (IOM, 2022), the number of international migrants across the globe in 2020 was about 281 million, which accounts for 3.6 % of the world's population. Most of these people, as pointed out by the United Nations, (2022), are not “willing migrants”, but individuals forced, out of necessity, to move away from their birth countries due to several factors including conflicts, natural disasters, economic, career and educational advancement. The result of the above is that the majority of the migrations are made towards more economically advanced countries. A list of the top 10 countries playing host to non-native residents by the United Nations (UN) in 2020 featured some of the most economically buoyant countries in the world. According to this report, the United States lead the way with 50.6million foreign born residents followed by Germany with 15.8million, Saudi Arabia with 13.5million, Russia with 11.6million, the United Kingdom with 9.4million, United Arab Emirates with 8.7million, France with 8.5million, Canada with 8.0million, Australia with 7.7million, and Spain with 6.8million respectively (World Population Report, 2023).

In January 2021, the European Commission reported that out of the 447.2 million people living in the EU (European Union) countries, 23.7 million (5.3%) were non-citizens and 37.5 million (8.4%) were foreign-born; Excluding those who were born and migrated within the EU countries (European Commission, 2022). Although the United Kingdom (UK) has isolated itself from the European Union, it bears a remarkable semblance with the EU countries in terms of immigration rate. Over the last 10 years, the rate of immigration in the UK, like most of the other European countries, has been relatively steady with an average of 673,000 entries per year. However, in January 2022 the number of entries into the United Kingdom was set at approximately 1.1 million persons with 560,000 people leaving the UK thus creating a net migration of 504,000 (Office for National Statistics, 2022; Investing.com, 2022). A record in the region’s net immigration.

Following the steady rise in the rate of migration across the globe in the last 50 years, researchers, economists, and political scientists have indicated serious interest in identifying the factors responsible for immigration across the globe and its implication, especially economic, for countries involved (both host and vacated countries). Several factors have been identified such as the need for security in embattled regions or countries i.e. Ukraine, the need to escape hardship in certain poverty-striking regions, the formulation of attractive and accommodating immigration policies, and more recently freedom to travel after the covid-19 induced lockdown as well as the resumption of students who have been studying remotely in foreign universities (Clark, 2022). The consensus however is that “the driving force behind the perpetuity of immigration in developed countries is more economical than political” (Peri, 2016, p5). These efforts to explore the influencing factors and resultant effects of immigration have also resulted in the formulation of different theories and models for studying the national implications of immigration. Two perspectives stand out as offshoots of these theories and models, in the investigation of the impact of immigration on the national economy. First, there is the perspective of its “impact on the host country” and second its “impact on the vacated country” (Hainmuellar & Hopkins, 2014, p227). This study however lends itself to the impact of immigration on the host country’s economy.

According to Tumen (2016, p459), the effects of immigration on the growth of a host country’s economy are both direct and indirect. These direct effects are generally immediate such as an increase in the labour force and growth in TFP (total factor productivity) through a reduced ratio of dependence. As a country’s workforce experiences ageing, the dependency ratio (percentage of the population outside its workforce) increases. However, through immigration, the country’s workforce can easily be replenished as more immigrants are admitted into the labour market. The Office for National Statistics (2022) reported that in 2021, the number of employees in the EU who were citizens of countries outside the EU was 8.84 million all of whom were between 20 and 64 years of age.  This is easy to understand as most immigrants are either in search of better education or job opportunities and whether skilled or unskilled they are more likely to be contributors to the country than dependents. Hainmuellar and Hopkins (2014, p248) assert that the effects of immigration are primarily, labour market competition and fiscal burden.

Boubtanea, Dumont, and Rault (2016, p20) point out that OECD (Organization for Economic Cooperation and Development) countries in recent years have experienced massive increases in international migration, especially “labour migration”. The influx of immigrants into these countries creates labour competition in host countries which may be healthy or unhealthy from the native workers’ perspective. Labour market competition created by immigrants is perceived as healthy by natives if the immigrants are unskilled and only present substitutive options for the country’s workforce. However, when immigrants come in with higher competencies than them, the native workers tend to perceive the competition as unhealthy as it would mean that employers of labour are presented with better alternatives to what they have to offer and sometimes even at cheaper rates, depending on the economic conditions of the mother-country of immigrants. This is what Peri (2016, p3) meant when he said that immigration has consequences, and a win for one group of people may ultimately result in huge losses for other groups.

In addition to the replenishment of the country’s workforce, immigration also can accelerate national development in terms of research, inventions and technological innovation. Immigration is more likely to happen among educated citizens of a country than uneducated ones and among skilled individuals than unskilled groups. Peri, (2016, p27) observed that the fastest-growing group among foreign-born populations in Europe and the United States are students. This includes both those who take up permanent residence after their studies and those who are likely to return to their home countries. This group of individuals no doubt come into the country with a level of field-specific competencies and skills as most of them arrive with a minimum of a university degree or more. Also because modern-day migration policy is selective and tailored towards skilled individuals, most countries are bound to experience development in technology, invention and innovations arguably at the expense of departed countries (Boubtanea, Dumont, & Rault, 2016, p19).

Certain countries and regions of the world especially in America and Europe have introduced, in recent times, immigration programs and policies to attract skilled individuals from other countries, most of which are less buoyant economically. Bretschgar (2001) cited in Tumen (2016, p458), posits that a host country is better placed to raise market shares and avoid the cost of developing certain field-specific competencies if they sustain policies that attract and accommodate skilled immigration and even countries with non-selective immigration policies have also been shown over the years to experience high growth impact (Collantes et al, 2014, p608). The admission of skilled immigrants into the country also comes with the promise of increased job creation and substantial advancement in science and technology. Boubtanea, Dumont and Rault (2016, p8) reported that immigration contributed to the creation of about 40% of the net jobs in Europe, America and some Nordic countries between 1997 and 2007.

While the pandemic created a temporary halt to immigration, the effect of Covid-19 has triggered a massive increase in immigration. As noted by Dustmann, Schönberg, & Stuhler (2016, p34) 21st-century migration is predicated on high skill and education.  However, rising poverty rates in developing and under-developed countries worsened by the pandemic have expanded the migration group beyond the educated and skilled population to include individuals who just want a better place and are either low-level skilled or unskilled (Spenkuch, 2014). This indiscriminate entry of immigrants into the host country may be counterproductive for the national economy as most of these individuals end up multiplying the dependency ratio of that country.

Indiscriminate immigration may be appreciated more in areas where depopulation has become a concern, as was the case in rural Spain in 2008 (Collantes et al, 2014, p609), and there may be a need to re-populate certain regions of a country. However, in areas or countries where there is limited space for housing, its impact might be negative. Creating overcrowding, increased cost of housing, and competition for limited social amenities and resources (Kiester & Vasquez- Merino, 2021, p83). Accetturo et al. (2014, p54) in their study of the effect of immigration on house prices found that immigration raises average house prices at the city level.

In summary, the effect of immigration on the host country is not just positive but there are also situations created by immigration that may not be very beneficial for the host country and its citizens. It is in the realization of the dual effect immigration has on the host country’s economy that this study aims at exploring the impact of international student immigrants on the UK economy taking cognizance of the benefits and consequences.


1.2 Contribution to Knowledge

Research on immigration in the last decade has grown in many different directions concurrently. However, two of the most prominent areas of immigration research are the political and economic sectors (Borjas, 2016, p965). These studies have focused on the implication of immigration in government policy formulation and national economic development. Specifically, the part of research that borders on the economic implications of immigration has taken on two perspectives of investigation namely; the host-country perspective and the vacated-country perspective (Hainmuellar & Hopkins, 2014).

While it is true that many studies have been carried out on the economic impact of immigration on host countries in such areas as skilled immigration and unskilled immigration, there are very few studies on how immigrants who entered a country for the sole purpose of education (as students) influenced the economy of the such host country. And even in the few instances where such research has been carried out, none has (to the best of the researcher’s knowledge) been carried out in the UK.


1.3 Research Aims/Objectives

In the realization of this knowledge gap, this research seeks to explore the impact of international student immigrants on the UK economy (using Newcastle as a case study), taking cognizance of the benefits and consequences. The study seeks, specifically, to attain the under-listed objectives;

  1. To assess the impact of brain gain on the UK economy by new student immigrants.
  2. To explore the benefits of increased aggregate demand and real GDP on the economic growth of the United Kingdom.
  3. To explore the impact of international student immigrants on social issues such as limited housing supply and increase in welfare benefits on the UK economy.

1.4 Research Questions

The study will focus on exploring these stated objectives by seeking unbiased and scientifically generated answers to the following research questions;

1.     How does the knowledge gained by new student immigrants impact the UK economy?

2.     What are the benefits of increased aggregate demand and real GDP on the economic growth of the United Kingdom?

3.     What is the impact of international student immigrants on social issues such as limited housing supply and an increase in welfare benefits on the UK economy?

In carrying out the above task, therefore, this study is expected to identify the specific benefits, as well as the likely consequences of, international student immigration for the UK economy. Thereby availing critical information for policy development and economic practice.


1.5 Thesis Structure/Outline

The summary of each chapter’s contents is presented as follows:

• Chapter 1: Introduction. The chapter provides a background study of the economic impact of immigration and contextualizes the research work focusing attention on both the positive and negative impacts of immigration on host countries. The chapter also presents an outline of the project as well as the aim, objectives and contribution of this research to knowledge.

• Chapter 2: Literature Review. This chapter explores the relevant literature and scholarly works around the concept of immigration and its impact on the national economy. The chapter also presents a critical analysis of the major theories as well as current academic arguments regarding the economic impact of immigration.

• Chapter 3: Methodology. Outlines approach and design for the research, methods for data collation, and analysis to generate results.

• Chapter 4: Results and Discussion. Presents and interprets data assembled from interviews and discussions with respondents, and integrates findings of the study with the existing body of knowledge.

Chapter 5: Summary and Conclusion. Summarizes the work done in this research, and makes conclusive remarks on the findings and their implication for policy development and economic practices.



Click “DOWNLOAD NOW” below to get the complete Projects

FOR QUICK HELP CHAT WITH US NOW!

+(234) 0814 780 1594

Buyers has the right to create dispute within seven (7) days of purchase for 100% refund request when you experience issue with the file received. 

Dispute can only be created when you receive a corrupt file, a wrong file or irregularities in the table of contents and content of the file you received. 

ProjectShelve.com shall either provide the appropriate file within 48hrs or send refund excluding your bank transaction charges. Term and Conditions are applied.

Buyers are expected to confirm that the material you are paying for is available on our website ProjectShelve.com and you have selected the right material, you have also gone through the preliminary pages and it interests you before payment. DO NOT MAKE BANK PAYMENT IF YOUR TOPIC IS NOT ON THE WEBSITE.

In case of payment for a material not available on ProjectShelve.com, the management of ProjectShelve.com has the right to keep your money until you send a topic that is available on our website within 48 hours.

You cannot change topic after receiving material of the topic you ordered and paid for.

Ratings & Reviews

0.0

No Review Found.


To Review


To Comment