Research Of Australia’s Education Exports To China’s Influence On Australias Service GDP

Recently education, as a service export has been growing exponentially in developed countries. Education is currently Australia’s third largest export with China ranking as the largest consumer making up30%of Australia’s total education exports.This paper will research the influence of Australia’s education exports to China on Australia’s Service GDP, including their influence on Australia’s Service GDP growth, tourism industry and influence on other industries within Australia. This paper used order of least squares regression (OLS) to test the relationship between Australia’s education exports to China and Australia’s service GDP growth. The results of the regression prove that there is a positive relationship between Australia’s service GDP growth and Australia’s education exports to China’s growth. This paper will take the results of the Australian Tourism Bureau Chinese International Students’ tourism behavior survery results to form a model to calculation the Chinese International students studying in Australia’s economic contribution to Australia’s GDP through their post-graduation tourism. The results of the model show that Chinese International students have a strong influence on Australia’s tourism industry returns. The model proves that in the last8years Chinese international graduate students made a large contribution to Australia’s Tourism Industry by returning to Australia for travel and also through the relatives and friends whom accompanied them. The model also predicts that in the next5years Chinese International graduate students will make an even larger contribution to Australia’s GDP through their return trips to Australia. Therefore, education exports to Chinese leads to an increase in Australia’s tourism exports to China. This paper used Access Economics2008International Students studying in Australia Input/output (I/O) model results to calculate the ratio between the Chinese international students study expenditure and living costs. The results of the model are that in2013, for every US dollar Chinese international students spend on education, Chinese students spend another.93US dollars on other living costs. Finally, this paper used time series regression analysis Australia’s exports to China’s annual growth trend. The results show that Australia’s education exports to China’s average growth is relatively high and is now the Australia’s second fastest growing major export. Therefore education exports to China are significantly important for Australia’s Service GDP growth.