Bibliographic Details
| Title: |
Cashing in on export education: evaluating the implications of taxing international students. |
| Authors: |
Liu, Xianglong Locky1 (AUTHOR) locky.liu@vu.edu.au, Giesecke, James1 (AUTHOR), Nassios, Jason1 (AUTHOR) |
| Source: |
Applied Economics. Apr2025, p1-21. 21p. 15 Illustrations. |
| Subject Terms: |
*Economic impact, *Terms of trade, *Export demand, Foreign study, Foreign students |
| Abstract: |
We examine the economic impact and tax efficiency of an international student levy (ISL) in Australia, addressing the limited empirical evidence on the demand elasticity of international education. To benchmark our analysis, we estimate the demand elasticity for export education and test the robustness of our findings under alternative elasticity assumptions. Our results indicate that an ISL contracts the tertiary education sector, with greater reductions in output as demand becomes more elastic. Under our central elasticity estimate of −3.5, an ISL weakens the labour market and reduces GDP. However, when demand is sufficiently inelastic, an ISL improves the terms of trade and enhances real consumption. From a tax efficiency perspective, an ISL performs well relative to other taxes, though its efficiency advantage primarily arises from the sector’s tax-exempt status rather than inherent sector-specific attributes. [ABSTRACT FROM AUTHOR] |
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| Database: |
Business Source Complete |
