Economic Impact of Universities in the United States

Abstract

[Purpose] The purpose of this study was to analyze how economic impact analysis is conducted in universities in the U.S. and to derive meaningful insights for Korean universities when measuring the economic ripple effects on their local communities. [Methods] To achieve this, we conducted a case analysis of universities in the U.S. that regularly perform economic impact analyses. We reviewed more than 100 national universities and 50 liberal art colleges, and finally selected 5 universities for this study [Results] The study found that the economic impact analysis of universities vary depending on university type, mission and purpose of study of each university. The case universities tend to use the IMPLAN model with key indicators including operational, research, construction, employment, students, visiting spending. Public universities also tend to include tax revenue. [Conclusion] By measuring the economic impact of their universities, universities in the U.S. are emphasizing their social role and using it as a tool for government and community collaboration. In Korea, universities should also measure their economic and social impacts to not only prove the value of their universities, but also to encourage cooperation with the government, local governments, and local communities.