IDEAS home Printed from https://ideas.repec.org/p/edn/sirdps/249.html
   My bibliography  Save this paper

The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Northern Irish Economy: Homogeneity or Heterogeneity?

Author

Listed:
  • Hermannsson, Kristinn
  • Lisenkova, Katerina
  • McGregor, Peter G.

Abstract

This paper replicates the analysis of Scottish HEIs in Hermannsson et al (2010a) for the case of Northern Ireland in order to provide a self-contained analysis that is readily accessible by those whose primary concern is with the regional impacts of Northern-Irish HEIs. When we treat each of the four Higher Education Institutions (HEIs) that existed in Northern Ireland in 2006 as separate sectors in conventional input-output analysis, their expenditure impacts per unit of final demand appear rather homogenous, with the apparent heterogeneity of their overall impacts being primarily driven by scale. However, a disaggregation of their income by source reveals considerable variation in their dependence upon funding from the devolved Assembly and their ability to draw in income/funding from external sources. Acknowledging the binding budget constraint of the Northern Ireland Assembly and deriving balanced expenditure multipliers reveals large differences in the netexpenditure impact of HEIs upon the Northern Irish economy, with the source of variation being the origin of income. Applying a novel treatment of student expenditure impacts, identifying the amount of exogenous spending per student, modifies the heterogeneity of the overall expenditure impacts. On balance this suggests that the impacts of impending budget cut-backs will be quite different by institution depending on their sensitivity to public funding. However, predicting the outcome of budget cutbacks at the margin is problematic for reasons that we identify.

Suggested Citation

  • 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).
  • Handle: RePEc:edn:sirdps:249
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10943/249
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G & Swales, J Kim, 2010. "The Expenditure Impacts of London-based Individual Higher Education Institutions (HEIs) and their Students on the Economy of England: Homogeneity or Heterogeneity?," SIRE Discussion Papers 2010-106, Scottish Institute for Research in Economics (SIRE).
    2. Christopher Blake & Stuart McDowall, 1967. "A Local Input-Output Table," Scottish Journal of Political Economy, Scottish Economic Society, vol. 14(3), pages 227-242, November.
    3. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "An HEI-Disaggregated Input-Output Table for Northern-Ireland," Working Papers 1023, University of Strathclyde Business School, Department of Economics.
    4. Learmonth, D. & McGregor, P.G. & Swales, J.K. & Turner, K.R. & Yin, Y.P., 2007. "The importance of the regional/local dimension of sustainable development: An illustrative Computable General Equilibrium analysis of the Jersey economy," Economic Modelling, Elsevier, vol. 24(1), pages 15-41, January.
    5. 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.
    6. R. Harris & Q. C. Li & J. Moffat, 2011. "The impact of higher education institution-firm knowledge links on firm-level productivity in Britain," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1243-1246.
    7. Grant Allan & Peter Mcgregor & Kim Swales, 2011. "The Importance of Revenue Sharing for the Local Economic Impacts of a Renewable Energy Project: A Social Accounting Matrix Approach," Regional Studies, Taylor & Francis Journals, vol. 45(9), pages 1171-1186, March.
    8. Harminder Battu & John Finch, 1998. "Integrating knowledge effects into university impact studies. A case study of Aberdeen University," Working Papers 98-08, Department of Economics, University of Aberdeen.
    9. Richard Harris & Qian Cher Li & John Moffat, 2013. "The Impact Of Higher Education Institution–Firm Knowledge Links On Establishment-Level Productivity In British Regions," Manchester School, University of Manchester, vol. 81(2), pages 143-162, March.
    10. 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.
    11. Scott Loveridge, 2004. "A Typology and Assessment of Multi-sector Regional Economic Impact Models," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 305-317.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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).

    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. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G & Swales, J Kim, 2010. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Welsh Economy: Homogeneity or Heterogeneity?," SIRE Discussion Papers 2010-88, Scottish Institute for Research in Economics (SIRE).
    2. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "The Expenditure Impacts of London-based Individual Higher Education Institutions (HEIs) and their Students on the Economy of England: Homogeneity or Heterogeneity?," Working Papers 1030, University of Strathclyde Business School, Department of Economics.
    3. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G & Swales, J Kim, 2010. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Scottish Economy under Devolution: Homogeneity or Heterogeneity?," SIRE Discussion Papers 2010-64, Scottish Institute for Research in Economics (SIRE).
    4. Kristinn Hermannsson & Katerina Lisenkova & Peter G. McGregor & J. Kim Swales, 2014. "'Policy Scepticism' and the Impact of Scottish Higher Education Institutions (HEIs) on their Host Region: Accounting for Regional Budget Constraints under Devolution," Regional Studies, Taylor & Francis Journals, vol. 48(2), pages 400-417, February.
    5. 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).
    6. Kristinn Hermannsson & Katerina Lisenkova & Peter G McGregor & J Kim Swales, 2011. "Regional Impact Analyses and the Appropriate Treatment of Regional Budget Constraints under Devolution: An Application to the Impact of Scottish HEIs," ERSA conference papers ersa10p1595, European Regional Science Association.
    7. 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).
    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. 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.
    10. 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).
    11. 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.
    12. Brown, Jason P. & Pender, John & Wiser, Ryan & Lantz, Eric & Hoen, Ben, 2012. "Ex post analysis of economic impacts from wind power development in U.S. counties," Energy Economics, Elsevier, vol. 34(6), pages 1743-1754.
    13. Berka, Anna L. & Creamer, Emily, 2018. "Taking stock of the local impacts of community owned renewable energy: A review and research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3400-3419.
    14. Grant Allan & Peter Mcgregor & Kim Swales, 2011. "The Importance of Revenue Sharing for the Local Economic Impacts of a Renewable Energy Project: A Social Accounting Matrix Approach," Regional Studies, Taylor & Francis Journals, vol. 45(9), pages 1171-1186, March.
    15. Chang Seung & Edward Waters, 2010. "Evaluating Supply-Side And Demand-Side Shocks For Fisheries: A Computable General Equilibrium (Cge) Model For Alaska," Economic Systems Research, Taylor & Francis Journals, vol. 22(1), pages 87-109.
    16. Lecca, Patrizio & Swales, Kim & Turner, Karen, 2011. "An investigation of issues relating to where energy should enter the production function," Economic Modelling, Elsevier, vol. 28(6), pages 2832-2841.
    17. 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).
    18. Turner, Karen, 2009. "Negative rebound and disinvestment effects in response to an improvement in energy efficiency in the UK economy," Energy Economics, Elsevier, vol. 31(5), pages 648-666, September.
    19. Konan, Denise Eby, 2011. "Limits to growth: Tourism and regional labor migration," Economic Modelling, Elsevier, vol. 28(1), pages 473-481.
    20. Andrzej Torój, 2016. "Regional Economic Impact Assessment with Missing Input-Output Data: A Spatial Econometrics Approach for Poland," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 8(2), pages 61-91, June.

    More about this item

    Keywords

    Higher Education Institutions; Input-Output; Northern Ireland; Impact study; Multipliers; Devolution;
    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

    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:edn:sirdps:249. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Research Office). General contact details of provider: https://edirc.repec.org/data/sireeuk.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.