Limiting international students could cost Dutch economy billions, study shows

A study by SEO Economic Research has revealed that restricting the number of international students in the Netherlands could cost the Dutch economy up to 4,8 billion euros. 

Deterring international students will damage Dutch economy

Erasmus University in Rotterdam, along with the universities in Leiden, Utrecht, and Amsterdam (UvA and VU), commissioned SEO Economic Research to assess the impact of limiting the number of international students on the Netherlands. The research institute found that having fewer students from abroad in the Randstad region would result in an economic loss of 3,9 to 4,8 billion euros.

Removing courses taught in English and capping the number of international students studying at Dutch universities could result in a 75 percent drop in international bachelors’ students and 25 percent drop in masters’ students. While this would save the government millions and slightly ease housing shortages, the negative effects would outweigh the benefits the country would gain.

According to the Financieele Dagblad (FD), with the Netherlands relying on international students who stay in the Netherlands after graduating, the skilled workforce would shrink, tax revenues would decline and businesses would feel the drop in demand for goods and services to which internationals contribute. Business services and financial institutions would be the worst affected.

Foreign students needed for future of the Netherlands

The study comes as the government pushes for new legislation to limit internationalisation in the Netherlands, especially in the Randstad. One proposal included is requiring most university degrees to be taught in Dutch.

There are concerns that this would not only be bad for the economy but could also affect the quality of higher education as universities would struggle to recruit international lecturers and researchers. Dutch universities have already been dropping in global rankings, and this could make things worse.

Universities have proposed a counteroffer to cut certain English-language programs and cap the number of students enrolled in such courses. This plan has gotten support from MPs. "We should be doing everything we can to attract talent here," President of the Executive Board of Erasmus University Rotterdam, Annelien Bredenoord, told FD.

The universities are urging politicians to come up with a “national talent strategy” to attract people from different educational backgrounds to cover a broader variety of fields, and encourage them to stay in the Netherlands. Several institutions are already trying to help students integrate by exposing them to the Dutch language and culture.