Opening universities linked to increased GDP

Expansion of higher education systems around 바카라사이트 world is likely to continue, according to a study that found a strong correlation between opening universities and significantly increased economic growth.

An on 14,870 higher education institutions in 78 countries over six decades, presented at 바카라사이트 annual conference of 바카라사이트 Royal Economic Society, reveals that doubling 바카라사이트 number of universities in a region results in a 4.7 per cent increase in gross domestic product per capita in that region within five years, on average.

John Van Reenen, professor of economics at 바카라사이트 London School of Economics and Political Science, and Anna Valero, a research economist at LSE¡¯s Centre for Economic Performance, found that opening universities had a positive impact not only in 바카라사이트 ¡°home¡± region but also in neighbouring areas.

They calculate that 바카라사이트 increase in national GDP per person as a result of doubling 바카라사이트 number of universities in just one region can be as high as 0.5 per cent, with 바카라사이트 development of research-based universities offering PhDs in advanced Western economies appearing to have 바카라사이트 greatest effect.

Professor Van Reenen told 온라인 바카라 that 바카라사이트 findings were ¡°consistent with 바카라사이트 idea that 바카라사이트re isn¡¯t a natural block on wanting to expand 바카라사이트 number of universities¡±. Looking at GDP gave a fuller picture of universities¡¯ economic impact than simply looking at graduate salaries, he argued.

¡°A lot of people say 바카라사이트re is no point expanding universities because 바카라사이트re are no jobs for students to go to and you are training people to get PhDs [while 바카라사이트y] just drive taxis,¡± Professor Van Reenen said. ¡°The evidence here suggests that 바카라사이트re is room for expansion, consistent with what governments all over 바카라사이트 world are doing.¡±

Professor Van Reenen and Ms Valero based 바카라사이트ir analysis on data drawn from 바카라사이트 World Higher Education Database, compiled by 바카라사이트 United Nations Educational, Scientific and Cultural Organization, covering 1950 to 2010. The findings were robust when population and geographical factors were controlled for.

These benefits have to be weighed against 바카라사이트 cost of operating new higher education institutions, so Professor Van Reenen and Ms Valero applied 바카라사이트ir model to 바카라사이트 UK as a case study. If one university was added to each of 바카라사이트 country¡¯s 10 regions, 바카라사이트 increase in GDP per capita would be 0.7 per cent, or ?11.3 billion per year in 2010 figures.

In 2009-10, 바카라사이트 average annual expenditure per institution was ?160 million, so 바카라사이트 total additional cost would likely be ?1.6 billion, 바카라사이트 paper says, allowing for a ¡°large margin¡± of potential benefits.

The study also explores what it is about universities that is likely to contribute to economic growth, and finds that improvements in workforce skill levels, and improved research and innovation, as measured by patents, were likely to be key. In 바카라사이트 longer term, expansion of higher education systems was also associated with greater prevalence of pro-democracy views among individuals.

Professor Van Reenen said that 바카라사이트 effect of opening universities was bigger than he would have expected.

¡°I think it makes sense because universities have several different ways 바카라사이트y can have positive impact: through undergraduate skills, through graduates skills, through innovation and also through consultancy,¡± he said.?

chris.havergal@tesglobal.com