The study developed a general method for analyzing the economic impact of international university students on a local or regional economy and applied the methodology to Michigan Technological University. Major findings included the following: international students accounted for $2,693,814 in total direct and indirect expenditures in the region for the 1986-87 academic year, or $11,319 on a per student basis. International students also maintained substantial balances in bank transactions and savings accounts. The first chapter presents the general framework used in the analysis based upon national income accounting concepts and definitions and student expenditures. Chapter 2 describes the equations used in the economic impact study. Chapter 3 discusses data sources and data collection and suggests statistical techniques for selecting a sample of students (in this case 35 students from a population of 238 international students). Chapter 4 presents data related to Michigan Technological University, and chapter 5 discusses the effects of financial transactions by international students on regional financial institutions and flow of funds. Chapter 6 considers additional demographic material, and the last chapter presents conclusions, implications, and applications of the model on a larger scale and to different regions. The questionnaire used to survey international students is included in an appendix. Eight references. (DB)