Assessing the Regional Economic Impact of Higher Education Institutions: An Application to the University of Cardiff

Abstract

I evaluate the regional and local economic impact of the University of\ud Cardiff, dividing its effects into two major sides: expenditure impacts and knowledge\ud impacts. I review the major tools and methodologies available in the literature to\ud assess the two sides. The expenditure impact in the financial year 2000–2001 is\ud measured through a Keynesian multiplier model developed by the Centre for\ud Advanced Studies in Social Sciences, Cardiff University, in order to compare that same\ud impact in the 1994–1995 financial year. The university’s knowledge impact is assessed\ud through two main variables: (1) employment and destination of graduates, or people\ud impact, and (2) kind of knowledge produced. Cardiff University’s graduates enjoy fullemployment,\ud and according to our conceptual framework, Cardiff’s higher education\ud system is classified as ‘‘nonactive’’ positional competition and ‘‘social’’ knowledge\ud production

Assessing economic impact and efficiency of higher education institutions

“…Section 1.2 attends to the theoretical and methodological approaches to studying HEIs and their economic impact. The methods, addressed individually below, include: the single case study approach (Bramwell & Wolfe, 2008;Garrido-Yserte & Gallo Rivera, 2010;Goddard & Vallance, 2013;Eesley & Miller, 2017;Steinacker, 2005;Tavoletti, 2007), the multiple HEI approach (see Alves et al, 2015;Carlsson & Fridh, 2003;Elliott, Levin, & Meisel, 1988;Guerrero, Cunningham, & Urbano, 2015;Schartinger, Schibany, & Gassler, 2001), the knowledge production function approach (Anselin, Varga, & Acs, 1997, 2000Barrio-Castro & García-Quevedo, 2005;Fischer & Varga 2003;Lin, Kung, & Wang, 2015;Sevinc, 2014), and cross-sectional approaches (Baryla & Dotterweich, 2001;Florax, 1992;Florax & Folmer, 1992;Fogarty, 1993;Tornquist & Hoenack, 1996). Section 1.3 turns its attention to the concept of efficiency, and explores the methodological approaches used to evaluate efficiency in the educational sector.…”

“…Though the traditional method of economic impact analysis applies to some events such as conventions and conferences, HEIs present a unique challenge (Elliott, Levin & Meisel, 1988). Apart from the operation of HEIs generating typical impacts such as incremental area spending flows, HEIs, also create extra future impact via enhancements such as human capital formation, and by also increasing the technological base of the area (Hudson, 1974;Greenwood, Sanchez, & Wang, 2013;Tavoletti, 2007).…”

“…Individual approaches use economic forecasting models and input-output models to estimate both the direct and indirect impacts of individual universities. These models take into account variables such as HEIs' impacts upon local and regional employment, as well as their investment in the local economy (Bramwell & Wolfe, 2008;Garrido-Yserte & Gallo Rivera, 2010;Goddard & Vallance, 2013;Eesley & Miller, 2017;Steinacker, 2005;Tavoletti, 2007). Blackwell, Cobb and Weinberg (2002) note that the popularity of this approach from the 1970s to the 1990s can be attributable to a white paper issued by the American Council of Education that advocated for a tailored approach to estimating economic impact.…”

Matching Higher Education with the Labour Market in the Knowledge Economy

“…Towards student-centred, labour-market focused universities Within the European Higher Education Area, the role of new (and, previously, significantly less important) stakeholders will be enhanced in discussions at national and European Commission level. Universities will increasingly be expected to meet not only the changing needs of the state but also the changing needs of students, employers, the labour markets and industry and the regions in which they are located (see Arbo and Benneworth, 2006;Goddard, 2000;OECD, 2005;Tavoletti, 2004Tavoletti, , 2005Tavoletti, , 2007Tavoletti, , 2008Tavoletti, , 2009. The relationships between stakeholders are changing fundamentally the missions and roles of public and private HE, as the role of the state diminishes (especially in funding), the demands from students and labour markets grow for HE to become more teaching-oriented and industry and the regions expect the HE sector to be more research-oriented.…”

The Role of Universities in Supporting Local Agroindustry

“…Many university faculties across Europe are concerned to produce graduates who are able to contribute to such development (Tavoletti and Lazzeretti, 2006;Tavoletti, 2007), but this requires them to move beyond their disciplinary limits and to focus through interdisciplinary cooperation on the preparation of people for specific careers.…”