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This study examines the economic impact of international students' influx on UK's cultural goods trade after the abolition of Post Study Work (PSW) visa, which effectively allow graduates from non-EU countries to stay in the UK for at least two years after completing a UK degree. Using administrative enrolment data covering the universe of UK higher education sector spanning from 2008 to 2016, this study provides evidence demonstrating that the PSW visa abolition corresponded with a 34.62% average reduction in the value of UK's cultural goods export trade to non-EU countries (relative to that to EU countries). On the contrary, the PSW visa abolition has no impact on cultural goods import trade. Furthermore, the PSW visa abolition only impacts on cultural goods export to countries with low GDP, population, and high stock of immigrants. Given the substantial negative impact of a decreased influx of international students, government should be well-warranted when formulating relevant policy.
