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In a paper by McKay and Lewis (1993), average annual expenditure by overseas students at the University of Wollongong was estimated. These estimates are the starting point of this paper. In contrast, this paper examines the multiplier effects of Wollongong overseas student expenditure on the Wollongong economy. From this, it makes inferences on the extent of spending by overseas students enrolled in Australian universities and predicts the likely national economic impacts. In establishing the multiplier effects, overseas students expenditure is applied to the input/output technique, which was pioneered by Leontief. Total overseas student spending is calculated for Wollongong and Australia, classified by sector1 and then applied to Wollongong and national input/output tables. This provides output, income and employment predictions. This paper estimates that in 1992, the 1239 overseas students studying at the University of Wollongong created 705 full-time equivalent Jobs, while the 39,490 overseas students studying at Australian universities generated 30,036 jobs. This study applies only to overseas students enrolled at Australian universities and not those at high schools, TAFE or ELICOS colleges.