International Students Boost State and Local Economies

FAYETTEVILLE, Ark. – International students at the University of Arkansas contributed an estimated $25.4 million to the Fayetteville economy in 2009-2010, according to a report by the Association of International Educators. According to the report, the economic impact of international students studying in Arkansas as a whole totaled $75 million.

The association’s calculation is based on the amount of money students bring with them when they come here to study, and does not include a multiplier effect. The figures include money international students spend on tuition and living expenses for themselves and their dependents, minus any support they received from their institutions.

The report only tells part of the story, however.

“International students and scholars not only play an important role in our economy while they are students, but many stay and become permanent residents of the state,” said University of Arkansas provost Sharon Gaber. “As students, they work with our faculty on cutting-edge research and help our students appreciate the increasingly interconnected world in which we live. After they graduate, they continue to help the Arkansas economy to grow.”

Norna Holm, for example, came to the University of Arkansas from Sweden at the age of 46, to study chemical engineering. She graduated with a bachelor’s degree in 1992 and went to work for Consumer Testing Labs in Northwest Arkansas. The company hired her to set up a food testing lab for Walmart, the first lab of its kind in the area. When she started the lab, she was the only employee. By the time she retired in 2009 the lab employed 55 people in Northwest Arkansas. She did more than create an essential facility – she created jobs. 

Andres Angulo, from Colombia, earned both a bachelor’s and master’s degree in industrial engineering from the university’s College of Engineering, and recently started his own company in Northwest Arkansas. The company, Human Performance Integrated Systems, combines his engineering experience with his more recent interest in exercise and human physiology. To learn more about these fields, to help develop his company, he is now working toward a second master’s degree, this time in exercise science at the College of Education and Health Professions.

Angulo’s company develops software to capture physiological data for a person or group of people who exercise. At this point the software can be used to track and analyze connections between exercise and heart rate, blood pressure, weight and many other physiological variables. Ultimately his goal is to develop the software so it can be used to improve athletic performance or exercise efficiency; for example, to help a person determine the best exercise program for losing weight or maintaining a healthy heart. Angulo believes the company’s software will also be a valuable tool for researchers. Currently the company employs one full-time employee and six people as subcontractors. Angulo hopes that as the company grows the six positions will become full time jobs in Arkansas.

Local and state businesses also benefit from the ability to hire international students, either as interns while they are in school, or as full time employees after graduation.

“This is a real win-win situation for the employers and students,” said Chung Tan, manager of economic development for the Fayetteville Chamber of Commerce. “We have companies in Fayetteville, for example, that import raw materials from China. I know of one that was able to hire a graduate from China, someone who knew both the language and the culture, and was very valuable in the negotiation and purchasing process.

“At the chamber we have recently hired a University of Arkansas student from Costa Rica as an intern. He  adds a whole new dimension to our services, simply because he speaks Spanish.”

Tan said that Arkansas businesses such as Walmart and Tyson Foods are global, and need the expertise of graduates from many countries. Other businesses in Northwest Arkansas and the state want to expand into global markets, or import products from foreign countries; for these companies it’s a clear advantage to be able to hire international students who are familiar with Arkansas as well as their own country.

Tan says international students who have had a positive experience in Arkansas and at the university also serve as ambassadors, whether they remain in the state or return to their home country.

“There have been studies that show when students go home and enter the business world they retain their ties to the state. They are more likely to order from the United States and from the state where they formed relationships. In a competitive global market, this is another economic benefit,” she said.

In all, a total of 3,549 foreign students studied at colleges and universities in Arkansas in the 2009 academic year. The University of Arkansas had the largest number of international students with 1,250.

Todd Shields, interim dean of the Graduate School and International Education, noted that economic impact is only one reason to increase the number of international students coming to the University of Arkansas.

“Fayetteville is enhanced more than economically by the presence of our international students. As the university draws people from all over the world to Fayetteville, our citizens expand their cultural awareness and understanding,” said Shields. “International students’ presence here helps us to be an ever more welcoming community with a rich global diversity.”

International students at the University of Arkansas come from over 120 different countries.

“We are delighted to see the numbers of foreign students and scholars increasing and the academic reputation of the University of Arkansas growing around the world,” said Michael Freeman, director of the office of international students and scholars. The office, which is part of the Graduate School and International Education, welcomes international students and scholars when they arrive, monitors and assists students in maintaining their immigration status, and provides support to the international students and scholars studying, teaching and conducting research at the university.