Economic Impact of North-West University International Students on the Mahikeng Economy

Abstract

Migration is a not a new issue in the 21st century. Humanity has experienced different waves of human displacement. The unprecedented increase in the number of migrating international students has been fueled by a number of factors. These factors include the recognition of certificates, the availability of certain fields of specialization, family recommendation and the reputation of institutions. At no time in human existence have people stopped moving. Nowadays questions have been raised with regards to the socio-economic impact of international migration. Despite the fact that migration has been associated with the concept of development, the cost of migration remains a permanent debate. As a result of this, migration can be described as a mixed blessing. National and international studies have revealed that international students' migration can contribute significantly to the local business sector and the host institution. Conversely the marginal cost of admitting international students has been reported to have a financial cost to the host nation and the tax payers. It is, therefore, the role of each institution and nation to acquire empirical data and assess the strengths, weaknesses, opportunities and threats of international students' migration in order to harness the positive benefits of these highly skilled immigrants. The aim of this research was to determine the economic impact of international students at the Mafikeng Campus of the North-West University on the Mahikeng economy. This research used both a qualitative and a quantitative research designs. In order to achieve the objectives of the research, questionnaires and interviews were used as instruments for data collection. The data were collected using a self-administered questionnaires from international students. A simple stratified random sampling was utilised to select the participants. Semi-structured interview schedules were issued to collect more information from the University officials for more in depth understanding of the impact of international students on the Mafikeng campus. A total of 227 international students took part in the survey with a response rate of 100%, while semi-structured interview schedules were administered to officials representing four out of the five faculties of the Mafikeng campus. The Cronbach Alpha test was used to test the reliability of the items found in the questionnaire. The data generated were analysed using SPSS version 22.5 to generate descriptive statistics. The results from the analysis indicated that the monetary value generated by international students amounted to R33 464 500 in 2017. Using the Jooste et al. (2013) multiplier of 0.3, international students generated a total indirect contribution of R43 464 500 to the Mahikeng economy, based on the expenditures they incurred. The economic significance of international students was found to be important to the Mahikeng economy, with a spill over effect to the local community. International students also benefited the Mafikeng campus through tuition, thereby increasing the university income. Also it was found that the main factors that attracted international students to the Mafikeng Campus of the North-West University included: the recognition of certificates, reputation of the campus, family recommendation, the relative cost of education, the peaceful environment and lack of good programmes from the home countries. Trend analysis of international students enrolled at the Mafikeng campus indicated a fluctuating pattern over the years because of changes in immigration policies by the Department of Home Affairs. Against the backdrop of the perceived negative impact of international students at the Mafikeng campus of North-West University by the community, it was found out that the economic contribution of international students outweighs the costs incurred by the host institution and the local community.