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Abstract for:

How universities boost economic growth

Anna  Valero,  John  Van Reenen,  December 2016
Paper No' CEPCP488: | Full paper (pdf)
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Keywords: universities; growth; human capital; innovation

JEL Classification: I23; I25; J24; O10; O31

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This Paper is published under the following series: CentrePiece Magazine
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Abstract:

The expansion of higher education has helped to fuel economic growth around the world, according to research by Anna Valero and John Van Reenen. Analysing data on 15,000 universities in 78 countries for the period since 1950, they find that there is a strong positive impact of university expansion on regional economic growth. Doubling the number of universities in a region raises future GDP per capita by 4%. Focusing on the immediate challenges for the UK, they note that the benefits of university expansion far outweigh the costs, but Brexit poses significant risks. Until now, UK universities have thrived in a climate of openness to international students, academics and collaboration.


CentrePiece 21 (3) Winter2016 pages: 8-12

This article summarises ‘The Economic Impact of Universities: Evidence from Across the Globe’ by Anna Valero and John Van Reenen, CEP Discussion Paper No. 1444, August 2016.