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How universities boost economic growth

Listed author(s):
  • Anna Valero
  • John Van Reenen

The expansion of higher education has helped to fuel economic growth around the world, according to research by Anna Valero and John Van Reenen. Analysing data on 15,000 universities in 78 countries for the period since 1950, they find that there is a strong positive impact of university expansion on regional economic growth. Doubling the number of universities in a region raises future GDP per capita by 4%. Focusing on the immediate challenges for the UK, they note that the benefits of university expansion far outweigh the costs, but Brexit poses significant risks. Until now, UK universities have thrived in a climate of openness to international students, academics and collaboration.

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File URL: http://cep.lse.ac.uk/pubs/download/cp488.pdf
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Paper provided by Centre for Economic Performance, LSE in its series CentrePiece - The Magazine for Economic Performance with number 488.

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Date of creation: Dec 2016
Handle: RePEc:cep:cepcnp:488
Contact details of provider: Web page: http://cep.lse.ac.uk/centrepiece/

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