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Policy Scepticism and the Impact of Scottish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints under Devolution

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  • Hermannsson, Kristinn
  • Lisenkova, Katerina
  • McGregor, Peter G.
  • Swales, J. Kim

Abstract

A policy scepticism has emerged that challenges the results of conventional regional HEI impact analyses. Its 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 public-sector expenditure constraints that are binding under devolution. We show how conventional impact analyses can be augmented to accommodate regional public sector budget constraints. 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.

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  • Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "Policy Scepticism and the Impact of Scottish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints under Devolution," SIRE Discussion Papers 2010-54, Scottish Institute for Research in Economics (SIRE).
    • Handle: RePEc:edn:sirdps:191
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    References listed on IDEAS

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    1. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "An HEI-Disaggregated Input-Output Table for Scotland," SIRE Discussion Papers 2010-52, Scottish Institute for Research in Economics (SIRE).
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    14. Linda Ferguson & David Learmonth & Peter G McGregor & J Kim Swales & Karen Turner, 2007. "The Impact of the Barnett Formula on the Scottish Economy: Endogenous Population and Variable Formula Proportions," Environment and Planning A, , vol. 39(12), pages 3008-3027, December.
    15. Hermannsson, Kristinn & Lisenkova, Katerina & Lecca, Patrizio & McGregor, Peter G & Swales, J Kim, 2010. "The Importance of Graduates for the Scottish Economy: A Micro-to-Macro Approach," SIRE Discussion Papers 2010-80, Scottish Institute for Research in Economics (SIRE).
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    Cited by:

    1. Kristinn Hermannsson & Peter G McGregor & J Kim Swales, 2013. "Consumption expenditures in economic impact studies: an application to university students," Working Papers 1314, University of Strathclyde Business School, Department of Economics.
    2. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "An HEI-Disaggregated Input-Output Table for Wales," Working Papers 1021, University of Strathclyde Business School, Department of Economics.
    3. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "Policy Scepticism and the Impact of London-based Higher Education Institutions (HEIs) on the economy of England: Accounting for Alternative Uses of Public Expenditure," SIRE Discussion Papers 2010-97, Scottish Institute for Research in Economics (SIRE).
    4. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Scottish Economy under Devolution: Homogeneity or Heterogeneity?," Working Papers 1016, University of Strathclyde Business School, Department of Economics.
    5. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "An HEI-Disaggregated Input-Output Table for Scotland," SIRE Discussion Papers 2010-52, Scottish Institute for Research in Economics (SIRE).
    6. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "Policy Scepticism and the Impact of Northern Irish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints," SIRE Discussion Papers 2010-78, Scottish Institute for Research in Economics (SIRE).
    7. Kristinn Hermannsson, 2015. "Expenditure and Displacement effects of Students in the Periphery: Impact on the Scottish Highlands and Islands," ERSA conference papers ersa15p1601, European Regional Science Association.
    8. Lisenkova, Katerina & McGregor, Peter G. & Swales, J. Kim, 2010. "Policy Scepticism and the Impact of Welsh Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints," SIRE Discussion Papers 2010-72, Scottish Institute for Research in Economics (SIRE).
    9. McCann, Laura & Hutchison, Norman & Adair, Alastair, 2023. "The role of UK universities as economic drivers in a localisation agenda: A case study of City Deals," Land Use Policy, Elsevier, vol. 134(C).

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