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“Policy Scepticism†and the Impact of Northern Irish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints

Author

Listed:
  • Kristinn Hermannsson

    (Fraser of Allander Institute, Strathclyde University)

  • Katerina Lisenkova

    (Fraser of Allander Institute, Strathclyde University)

  • Peter McGregor

    (Fraser of Allander Institute, Strathclyde University)

  • Kim Swales

    (Department of Economics, University of Strathclyde)

Abstract

This paper replicates the analysis of Scottish HEIs in Hermannsson et al (2010b) for the case of Northern Ireland. The motivation is to provide a self-contained analysis that is readily accessible by those whose primary concern is with the regional impacts of Northern Irish HEIs. A comparative analysis will follow in due course. A “policy scepticism†has emerged that challenges the results of conventional regional HEI impact analyses. This denial of the importance of the expenditure impacts of HEIs appears to be based on a belief in either a binding regional resource constraint or a regional public sector budget constraint. In this paper we provide a systematic critique of this policy scepticism. However, while rejecting the extreme form of policy scepticism, we argue that it is crucial to recognise the importance of the publicsector expenditure constraints that are binding under devolution. We show how conventional impact analyses can be augmented to accommodate regional public sector budget constaints. While our results suggest that conventional impact studies overestimate the expenditure impacts of HEIs, they also demonstrate that the policy scepticism that treats these expenditure effects as irrelevant neglects some key aspects of HEIs, in particular their export intensity.

Suggested Citation

  • Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "“Policy Scepticism†and the Impact of Northern Irish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints," Working Papers 1025, University of Strathclyde Business School, Department of Economics.
  • Handle: RePEc:str:wpaper:1025
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    References listed on IDEAS

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    1. Siegfried, John J. & Sanderson, Allen R. & McHenry, Peter, 2007. "The economic impact of colleges and universities," Economics of Education Review, Elsevier, vol. 26(5), pages 546-558, October.
    2. Jan Oosterhaven & Dirk Stelder, 2002. "Net Multipliers Avoid Exaggerating Impacts: With A Bi–Regional Illustration for the Dutch Transportation Sector," Journal of Regional Science, Wiley Blackwell, vol. 42(3), pages 533-543, August.
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    1. January 5th Links
      by Martin Ryan in Geary Behaviour Centre on 2011-01-05 07:14:00

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    1. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G., 2010. "An HEI-Disaggregated Input-Output Table for Northern-Ireland," SIRE Discussion Papers 2010-76, Scottish Institute for Research in Economics (SIRE).
    2. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G., 2011. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Northern Irish Economy: Homogeneity or Heterogeneity?," SIRE Discussion Papers 2011-07, Scottish Institute for Research in Economics (SIRE).

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    More about this item

    Keywords

    Higher Education Institutions; Input-Output; Northern-Ireland; Impact study; Multipliers; Devolution; public budget constraint.;
    All these keywords.

    JEL classification:

    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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