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The Impact of Higher Education Institutions in Low-Density Territories

Author

Listed:
  • 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
    Center for Research and Studies in Sociology, University Institute of Lisbon, 1649-026 Lisboa, Portugal)

  • João Alves

    (Research Center for Endogenous Resource Valorization, Polytechnic Institute of Portalegre, 7300-555 Portalegre, Portugal
    Center for Research and Studies in Sociology, University Institute of Lisbon, 1649-026 Lisboa, Portugal)

  • Miguel Serafim

    (Polytechnic Institute of Portalegre, 7300-555 Portalegre, Portugal)

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.

Suggested Citation

  • Cristina Pereira & Joaquim Mourato & João Alves & Miguel Serafim, 2021. "The Impact of Higher Education Institutions in Low-Density Territories," Economies, MDPI, vol. 9(3), pages 1-13, August.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:3:p:112-:d:613337
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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. George Agiomirgianakis & Dimitrios Serenis & Nicholas Tsounis, 2017. "A distance learning university and its economic impact in a country’s peripheries: the case of Hellenic Open University," Operational Research, Springer, vol. 17(1), pages 165-186, April.
    3. Lorenz Blume & Thomas Brenner & Guido Buenstorf, 2017. "Universities and sustainable regional development: introduction to the special issue," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 37(2), pages 103-109, October.
    4. Peter Arbo & Paul Benneworth, 2007. "Understanding the Regional Contribution of Higher Education Institutions: A Literature Review," OECD Education Working Papers 9, OECD Publishing.
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