The Impact of Higher Education Institutions in Low-Density Territories

Cristina Pereira, Joaquim Mourato, João Alves and Miguel Serafim
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Cristina Pereira: Center for Advanced Studies in Management and Economics, University of Évora, 7000-809 Évora, Portugal
Joaquim Mourato: Research Center for Endogenous Resource Valorization, Polytechnic Institute of Portalegre, 7300-555 Portalegre, Portugal
João Alves: Research Center for Endogenous Resource Valorization, Polytechnic Institute of Portalegre, 7300-555 Portalegre, Portugal
Miguel Serafim: Polytechnic Institute of Portalegre, 7300-555 Portalegre, Portugal

Economies, 2021, vol. 9, issue 3, 1-13

Abstract: This article highlights the relevance of the location of HEIs in low-density territories in Portugal, using the Polytechnic Institute of Portalegre as a case study. Based on the American Council Education model and following a surveying approach to faculty, staff, and students, this research accounts for the total spending of incoming academics, other nonlocal university members and their visitors, that positively impacts regional development. A demand-side approach was followed so that indirect and induced effects could also be estimated. The main aim of this research paper is to quantify the total impact arising from the location of the Polytechnic in a given region, measured by economic and social indicators such as the financial return from public funds invested in the region, the number of jobs created, and the impact on the local gross domestic product. The results show an impact of more than EUR 17 million in the territory where the Polytechnic operates, representing 3.68% of the local GDP. The institution was also found to be the third major employer in the region, responsible for the creation of 471 jobs that account for 2.25% of the local economically active population.

Keywords: higher education institutions; economic impact; regional development; low-density regions (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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