IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/748.html
   My bibliography  Save this paper

Do research universities boost regional economic development? - Evidence from China

Author

Listed:
  • Chu, Shuai
  • Liu, Xiangbo

Abstract

This paper studies whether research universities can boost regional economic development through an exogenous shock of a forced relocation of a research university in China. We analyze the development in the treated regions compared with a set of control regions that are created using the synthetic control method and find that research universities can have negative effects on local economic development. We then perform a series of robustness checks. Our main results carry through. By employing a more exogenous shock and more reliable identification strategies, our study provides evidence that research universities do not necessarily promote regional economic development.

Suggested Citation

  • Chu, Shuai & Liu, Xiangbo, 2021. "Do research universities boost regional economic development? - Evidence from China," GLO Discussion Paper Series 748, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:748
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/228457/1/GLO-DP-0748.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Enrico Moretti, 2010. "Local Multipliers," American Economic Review, American Economic Association, vol. 100(2), pages 373-377, May.
    3. Moretti, Enrico, 2004. "Estimating the social return to higher education: evidence from longitudinal and repeated cross-sectional data," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 175-212.
    4. Radzivon Marozau & Maribel Guerrero & David Urbano, 2021. "Impacts of Universities in Different Stages of Economic Development," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(1), pages 1-21, March.
    5. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    6. Maryann Feldman & Pierre Desrochers, 2003. "Research Universities and Local Economic Development: Lessons from the History of the Johns Hopkins University," Industry and Innovation, Taylor & Francis Journals, vol. 10(1), pages 5-24.
    7. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    8. Harvey Goldstein & Catherine Renault, 2004. "Contributions of Universities to Regional Economic Development: A Quasi-experimental Approach," Regional Studies, Taylor & Francis Journals, vol. 38(7), pages 733-746.
    9. Yi Chen & Ziying Fan & Xiaomin Gu & Li-An Zhou, 2020. "Arrival of Young Talent: The Send-Down Movement and Rural Education in China," American Economic Review, American Economic Association, vol. 110(11), pages 3393-3430, November.
    10. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    11. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    12. Gharehgozli, Orkideh, 2017. "An estimation of the economic cost of recent sanctions on Iran using the synthetic control method," Economics Letters, Elsevier, vol. 157(C), pages 141-144.
    13. Joshua Drucker, 2016. "Reconsidering the Regional Economic Development Impacts of Higher Education Institutions in the United States," Regional Studies, Taylor & Francis Journals, vol. 50(7), pages 1185-1202, July.
    14. Woodward, Douglas & Figueiredo, Octavio & Guimaraes, Paulo, 2006. "Beyond the Silicon Valley: University R&D and high-technology location," Journal of Urban Economics, Elsevier, vol. 60(1), pages 15-32, July.
    15. Vu, Tam Bang & Hammes, David L. & Im, Eric Iksoon, 2012. "Vocational or university education? A new look at their effects on economic growth," Economics Letters, Elsevier, vol. 117(2), pages 426-428.
    16. Zoltán Bajmócy & Miklós Lukovics & Zsófia Vas, 2010. "A Subregional Analysis of Universities’ Contribution to Economic and Innovation Performance," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 17(1), pages 134-150, May.
    17. Meng, Xin & Zhao, Guochang, 2016. "The Long Shadow of the Chinese Cultural Revolution: The Intergenerational Transmission of Education," IZA Discussion Papers 10460, Institute of Labor Economics (IZA).
    18. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    19. Bonander, Carl & Jakobsson, Niklas & Podestà, Federico & Svensson, Mikael, 2016. "Universities as engines for regional growth? Using the synthetic control method to analyze the effects of research universities," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 198-207.
    20. Tam Bang Vu & Eric Iksoon Im & Ashley Bulseco-McKim, 2014. "What Kind of Education is good For US Productivity? Community Colleges versus Universities," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 2(4), pages 204-215.
    21. Bhagwati, Jagdish & Hamada, Koichi, 1974. "The brain drain, international integration of markets for professionals and unemployment : A theoretical analysis," Journal of Development Economics, Elsevier, vol. 1(1), pages 19-42, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bonander, Carl & Jakobsson, Niklas & Podestà, Federico & Svensson, Mikael, 2016. "Universities as engines for regional growth? Using the synthetic control method to analyze the effects of research universities," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 198-207.
    2. Lee, Jongkwan, 2021. "The Role of a University in Cluster Formation: Evidence from a National Institute of Science and Technology in Korea," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    3. Jongkwan Lee, 2019. "The Local Economic Impact Of A Large Research University: Evidence From Uc Merced," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 316-332, January.
    4. Robbiano, Simone, 2021. "The innovative impact of public research institutes: evidence from Italy," MPRA Paper 106386, University Library of Munich, Germany.
    5. Becker, Sascha O. & Heblich, Stephan & Sturm, Daniel M., 2021. "The impact of public employment: Evidence from Bonn," Journal of Urban Economics, Elsevier, vol. 122(C).
    6. Frants, Marina, 2024. "Measuring the impact of economic sanctions on the Russian economy using the synthetic control group method," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 74, pages 104-123.
    7. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    8. Jo Reynaerts & Jakob Vanschoonbeek, 2022. "The economics of state fragmentation: Assessing the economic impact of secession," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(1), pages 82-115, January.
    9. Yi Chen & Ziying Fan & Xiaomin Gu & Li-An Zhou, 2020. "Arrival of Young Talent: The Send-Down Movement and Rural Education in China," American Economic Review, American Economic Association, vol. 110(11), pages 3393-3430, November.
    10. Vernon Henderson, J., 2007. "Understanding knowledge spillovers," Regional Science and Urban Economics, Elsevier, vol. 37(4), pages 497-508, July.
    11. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
    12. Daniel Aparicio-Pérez & Maria Teresa Balaguer-Coll & Emili Tortosa-Ausina, 2021. "Politics against Economics: The Case of Spanish Regional Financing," Working Papers 2021/15, Economics Department, Universitat Jaume I, Castellón (Spain).
    13. Joshua Drucker & Harvey Goldstein, 2007. "Assessing the Regional Economic Development Impacts of Universities: A Review of Current Approaches," International Regional Science Review, , vol. 30(1), pages 20-46, January.
    14. Samuel Verevis & Murat Üngör, 2021. "What has New Zealand gained from The FTA with China?: Two counterfactual analyses†," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(1), pages 20-50, February.
    15. David Gilchrist & Thomas Emery & Nuno Garoupa & Rok Spruk, 2023. "Synthetic Control Method: A tool for comparative case studies in economic history," Journal of Economic Surveys, Wiley Blackwell, vol. 37(2), pages 409-445, April.
    16. Andrea Bonaccorsi & Daniele Biancardi & Mabel Sanchez Barrioluengo & Federico Biagi, 2019. "Study on Higher Education Institutions and Local Development," JRC Research Reports JRC117272, Joint Research Centre.
    17. McGraw, Marquise J., 2020. "The role of airports in city employment growth, 1950–2010," Journal of Urban Economics, Elsevier, vol. 116(C).
    18. Andrea Bonaccorsi & Cinzia Daraio, 2013. "Knowledge spillover effects at the sub-regional level. Theory and estimation," DIAG Technical Reports 2013-13, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    19. Eunji Choi & Jonghoon Park & Seongwoo Lee, 2020. "The Effect of the Comprehensive Rural Village Development Program on Farm Income in South Korea," Sustainability, MDPI, vol. 12(17), pages 1-23, August.
    20. repec:esx:essedp:729 is not listed on IDEAS
    21. Shimeng Liu, 2015. "Spillovers from Universities: Evidence from the Land-Grant Program," Working Paper 9410, USC Lusk Center for Real Estate.

    More about this item

    Keywords

    Research Universities; Regional Economic Development; Synthetic Control Method;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:748. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.