We study the regionally heterogeneous effect of student spending in UK NUTS2 regions. Impact analyses of the £44bn students spend each year have so far been agnostic of the regional absorptive capacity to benefit from this expenditure. Building the first UK Multi-Regional Input-Output (MRIO) model and combining it with microdata, we find regional multipliers ranging from 1.11 to 1.37 for each £1 spent by a student. Similar variations are found in spillover effects and the importance of student spending to regional economies. The analysis shows a symbiotic relationship between student spending and regional industrial structures that produces varying impact outcomes.
|Number of pages||44|
|Publication status||Published - 2020|
|Name||RUNIN Working Paper Series|
Carrascal Incera, A., Kitsos, A., & Gutierrez Posada, D. (2020). Universities, students and regional economies: A symbiotic relationship? (RUNIN Working Paper Series; Vol. 2020, No. 05). https://doi.org/10.3990/4.2535-5686.2020.05