Regional economic effects of higher education institutions

The paper describes five economic linkages by which a university might promote regional development. Both theory and empirical evidence are considered In general, the benefits of a university are found to dissipate too quickly outside of a local region to have very decisive local effects; however, there are exceptions which suggest ways to make the university a more powerful agent of regional development. Major attention is given to the possibility of enhancing the ‘amenity’ effects and the ‘expenditure’ effects of a university. Basic issues of cause-and-effect are also reviewed in light of their policy implications.