ArticlePDF Available

Value Generation and Economic Impact of the University of Granada

October 2022
Studies in Higher Education

DOI:10.1080/03075079.2022.2138848

Authors:

Teodoro Luque Martínez

University of Granada

Luis Doña Toledo

University of Granada

Nina Faraoni

University of Granada

Salvador Del Barrio-García

University of Granada

Knowledge of the value generated within Higher Education institutions is of great interest for various agents, in particular managers, as well as governments and society. University missions and their scope complicate any comparable measurement of the effects they may have. Perhaps the most adequate term for it and one that includes simple economic impact is value. This study is centered on the estimation of the economic impact of the University of Granada (UGR) in the short term. Using a methodology based on the input-output framework and multipliers, the total (direct, indirect and induced) effects of UGR on production, income and employment are quantified, differentiating between economic sectors. The total impact of UGR is 3.2 times the expenditure of the agents linked to the activities of the university, which implies that each Euro invested by the government was converted into 7.1 Euros. Its effect on total production surpassed two-thousand million Euros, with an income of one-thousand million Euros and over twenty-five thousand equivalent jobs. Quantification of the impact is a measure of the importance of UGR to the local area and the performance of public-sector investment in higher education.

Content uploaded by Salvador Del Barrio-García

Content may be subject to copyright.

Content uploaded by Luis Doña Toledo

Content may be subject to copyright.

A preview of the PDF is not available

ResearchGate has not been able to resolve any citations for this publication.

Are Spanish Students Customers? Paradoxical Perceptions of the Impact of Marketisation on Higher Education in Spain

Article

Full-text available

Nov 2020
SOCIOL RES ONLINE

This article examines how higher education (HE) students are conceptualised in Spain, drawing on an analysis of policy and institutional narratives about such students, as well as on the perspectives of university staff and students themselves. More specifically, it will explore an interesting paradox that we encountered in our data: on one hand, marketisation is less firmly established in the HE system of Spain than in many other European countries, and policy and institutional narratives in Spain present the HE system as being relatively unmarketised. On the other hand, the staff and students we interviewed presented the Spanish HE system and the student experience as having been dramatically transformed by marketisation. In analysing this paradox, the article highlights the importance of not viewing countries as coherent educational entities. In addition – while broadly supporting scholarship that has pointed to a growing market orientation of national HE systems across Europe – the article draws attention to how the manner in which the marketisation of HE is experienced on the ground can be very different in different national contexts, and may be mediated by a number of factors, including perceptions about the quality of educational provision and the labour market rewards of a degree; the manner in which the private cost of education (if any) is borne by students and their families; and the extent to which marketisation may have become entrenched and normalised in the HE system of a country.

What actually works to enhance graduate employability? The relative value of curricular, co-curricular, and extra-curricular learning and paid work

Article

Full-text available

Apr 2021
HIGH EDUC

The focus on short-term graduate employment metrics has catalysed the employability agenda as a strategic directive in universities. A raft of embedded, co-curricular, and extra-curricular activities has emerged for developing employability. Their relative value lacks empirical exploration. This study explored graduates’ self-reported participation in, and their perspectives on the value of, a range of embedded, extra-curricular, and co-curricular learning activities, as well as paid work, for employability. Survey data were gathered (N = 510) from Business and Creative Industries graduates from three Australian universities about the perceived value of activities for skill development, gaining relevant experience, networking, and creating employment opportunities. The activities were considered more useful for gaining experience and skills than for broadening networks and improving career outcomes. Embedded and extra-curricular internships, as well as extra-curricular activities, were believed to be important for enhancing employability. Internships organised as an extra-curricular activity rated better than those delivered as work-integrated learning. Implications for stakeholders responsible for curricular and co-curricular design are discussed.

The Economic Impact of Universities: Evidence from Across the Globe

Article

Full-text available

Sep 2018
ECON EDUC REV

We develop a new dataset using UNESCO source materials on the location of nearly 15,000 universities in about 1,500 regions across 78 countries, some dating back to the 11th Century. We estimate fixed effects models at the sub-national level between 1950 and 2010 and find that increases in the number of universities are positively associated with future growth of GDP per capita (and this relationship is robust to controlling for a host of observables, as well as unobserved regional trends). Our estimates imply that a 10% increase in a region's number of universities per capita is associated with 0.4% higher future GDP per capita in that region. Furthermore, there appear to be positive spillover effects from universities to geographically close neighbouring regions. We show that the relationship between GDP per capita and universities is not simply driven by the direct expenditures of the university, its staff and students. Part of the effect of universities on growth is mediated through an increased supply of human capital and greater innovation. Furthermore, we find that within countries, higher historical university presence is associated with stronger pro-democratic attitudes.

The Economic Impact of the Universities in the State of Baden-Württemberg

Chapter

Full-text available

Aug 2018

The rise of global competition in a knowledge society and budget cuts in public spending have spurred an interest in the effects of universities on their regional economies. In contrast to the legacy of local impact analysis, this study examines the economic impact of an entire university landscape on a large regional economy: the federal state of Baden-Württemberg in Germany. Its methodology overcomes some of the traditional challenges and develops a differential incidence approach by benchmarking the impacts of universities against alternative public expenditures. Empirically, this study reveals that Baden-Württemberg’s nine public universities multiply initial state funding by a factor higher than two in regional impact. They account for an annual aggregate economic impact of €3.7 billion in value-added, 63,000 jobs, and €350 million in tax revenues. The attraction of students and research funding from outside the regional economy are found to be major levers when compared to alternative public expenditures.

How to Measure the Local Economic Impact of Universities? Methodological Overview

Article

Full-text available

Apr 2016

Today, the realization that certain economic units, such as universities or other large tertiary educational institutions have an impact on the economy of their region has gained prominence. There is a growing demand for precise studies on the economic impact of such entities, and the issue has attracted considerable attention in the scientific community. The examination of their economic impact is especially interesting when we compare regions with different levels of development, characterized by a successful international university. The different methods used in the literature render comparisons difficult; therefore, our focus is to recommend a method for investigating universities in different countries. In the absence of regional input-output matrices, a multiplier based approach is suggested for the first and second mission (education and research), while the application of a set of indicators is recommended for the third mission (knowledge transfer-related). There are several substantial problems in assessing the economic impact of universities. First, the definition of impact; second, measuring and estimating first-round expenditures and avoiding double-counting; third, estimating the model parameters (e.g. multipliers); fourth, the quantification of third mission activities. In this paper, we clarify theoretical definitions, resolve some contradictions, and consequently, recommend a feasible method considering the circumstances in Hungary.

The Local Economic Impact of Universities: An International Comparative Analysis

Conference Paper

Full-text available

Oct 2015

Nowadays the realization that certain economic units, universities or other objects have impact on the economy of their region comes more and more into prominence. A growing demand appears to generate more precise studies regarding the quantification of economic impact of these entities. The topic of the examination of economic impact is especially interesting and exciting when we can compare regions with different level of development, but with the presence of an internationally successful university. The local economic impact of a large tertiary education institution such as a university is an issue which has attracted considerable attention in literature. Different methods used in literature make results hardly comparable, we use the same method to investigate universities in different countries: in the lack of regional input-output matrices a multiplier based approach for first and second missions (education and research), while an application of Jongbloed's indicator set for third mission. Generally, there are four substantial problems. First, the definition of impact, second, measuring and estimating first-round expenditures and avoiding double-counting, third, estimating the correct value of the multiplier, fourth, the quantification of the third mission activities. The economic impact study has become a standard tool used by Western universities to persuade state legislatures of the importance of expenditures on higher education. As economic impact studies become a political tool in the review of education, conservative assumptions and methods should be used to promote objectivity in the research process. The goal of our study is to unravel the effects and impact of the University of Szeged (Hungary) and the University of Lorraine (France) regarding their local economy. The topic is quite unique, as the NUTS2 regions in which the examined universities are located in a lagging behind region compared to national average, but per capita GDP is 3.6 higher in Lorraine. On the other hand these universities have the institutional ranking around the 500 th place as published on the Academic Ranking of World Universities and employers of about 7000 employees. The socioeconomic welfare of the region supposedly depends on the university in Hungary, nevertheless the same amplitude in France. The goal of the study is to attempt the quantification of this presumption. As our results show, the impact per student is in the same magnitude in both countries, however third mission is much more implemented in France. The reasons of this difference can be found in historical facts and in different level of economic development.

Beyond the campus: higher education, cultural policy and the creative economy

Article

Full-text available

Nov 2015
Int J Cult Pol

This article examines the dimensions and dynamics of an expanding area of policy interest: the relationships between higher education and the creative economy. These activities feature collaboration between individuals and networks from the different sectors, involved in teaching, curriculum and policy development, research and knowledge exchange. They have become the focus of policy debates through their central role in stimulating innovation, creative and cultural clusters, sector development and graduate employability as well as their broader contribution to economic development and regeneration. They sit at the crossroads of different policy fields, namely cultural policy (involving the explicit support and development of the creative and cultural sector), higher education policy (including skills and curriculum development, but also fees structures and widening participation) and work and economic development policies (concerning, for example, employment regulation and business support). In this introductory essay, we explore two key dimensions through which higher education institutions and the cultural and creative sector interconnect: creative human capital and knowledge development, drawing on findings from a UK Arts and Humanities Research Council funded international research network looking at the platforms, practices and shared spaces beyond the campus. We also introduce the themes and contributions to this special issue of the International Journal of Cultural Policy.

THE LOCAL ECONOMIC IMPACT OF A LARGE RESEARCH UNIVERSITY: EVIDENCE FROM UC MERCED

Article

Oct 2018

Jongkwan Lee

In this paper, I estimate the short‐run economic effects of the opening of The University of California, Merced in 2005 by comparing Merced with a counterfactual constructed by the synthetic control method. During the period 2005–2014, the opening of the campus has increased local employment by 13%, mainly in nontraded industries, such as the service sector. These findings suggest that a large research university could bring immediate benefits to the local economy because of its large demand from students and employees. (JEL J24, O18, R11)

Patients’ Responsibilities in Medical Ethics

Article

Sep 2016

Zhu Fengqing

How higher education institutions contribute to the growth in regions of Europe?

Article

May 2015

Various studies show that higher education institutions contribute to regional economic development by R&D, creation of human capital, knowledge and technology transfer, and by creation of a favourable milieu. It is brought out that the basic procedure is to sum expenditures of the college community (students, faculty, staff and visitors) created by the presence of the institution and apply multipliers to account for the interdependency of economic activity in a local economy, resulting in an estimated ‘local economic impact'. The aim of the paper is to investigate the relationship between students in tertiary education and economic growth in NUTS 2 level in Europe from 1998 to 2008 by looking whether the share of tertiary students (measuring human capital) is correlated with the share of knowledge-intensive employment (KIE) in different regions. The increase in KIE is related to increasing levels of GDP per capita and R&D expenditures. Taking into account regional-level fixed effects, the share of tertiary students is not statistically significant. We found out that the increase in KIE is related to increasing levels of GDP per capita and R&D expenditures. The share of students five periods ago has a positive relation with the KIE: as we assumed, it takes time for the human capital to contribute to the economic development.