Growth and dynamics of Australia's education exports

Internationalisation of education and its effect on economic growth and development

“…The other right‐hand side variables, NEE and GFCF , suggest a significant positive long‐run relationship with RGDP growth. Openness in trade regimes indicates a highly significant positive relationship with RGDP in the long run and is supported by the literature (Chowdhury, 2012; The CIE, 2018). More open trade regimes enhance the competitiveness of international trade, including education exports.…”

“…The existing literature on the internationalisation of education is mainly centred on the descriptive aspects of the development of higher education from the major provider countries, such as the United States, the UK, Australia and Canada. Although there is ample debate on the definition of ‘internationalisation’ of education—especially its philosophical and commercial aspects—the existing literature mainly focuses on the determinants of education exports in the list of services exports (Chowdhury, 2012; Harman, 2004; Wooldridge, 2005). There is no clear distinction between the internationalisation and globalisation of education in the existing literature, and the terms simultaneously cover various features of providing education beyond the national boundary.…”

“…Realising the potential of the sector, Australia introduced a visa fee for international students in 1979. Supported by the Jackson Committees Enquiry report in 1984, the Hawke government changed its policy for higher education from ‘aid to trade’ and introduced international student fees from the mid‐1980s (Chowdhury, 2012). The widespread recognition of mixed public/private good aspects of education has become increasingly important in the decision to export education by education‐exporting countries.…”

“…Nonetheless, realising the potential wider benefit of internationalisation of education beyond its economic aspects, the Labor Government developed marketing strategies emphasising both provision of education on a commercial basis and positioning the sector as a provider of quality training and education. The aim of the strategy was to build friendships and networks and share expertise in human skill development to strengthen strategic and diplomatic relationships with Australia's Asia‐Pacific neighbours from the early 1990s, thereby strengthening the partnership in development (Chowdhury, 2012; Harman, 2005). By the mid‐2000s, Australia became one of the top global education providers, and education tourism continues to contribute significantly to the economy.…”

“…Previously, various theoretical and empirical literatures on the demand for services exports used the Heckscher–Ohlin model of comparative advantage and international trade to explain why some countries are successful in services exports (Chowdhury, 2012; Marvasti, 1994; Schulze, 1999). A similar analogy can be applied to Australia's trade in education, as it is the largest services export for Australia.…”