Assessing the Regional Economic Impact of Higher Education Institutions: An Application to the University of Cardiff

I evaluate the regional and local economic impact of the University of Cardiff, dividing its effects into two major sides: expenditure impacts and knowledge impacts. I review the major tools and methodologies available in the literature to assess the two sides. The expenditure impact in the financial year 2000–2001 is measured through a Keynesian multiplier model developed by the Centre for Advanced Studies in Social Sciences, Cardiff University, in order to compare that same impact in the 1994–1995 financial year. The university’s knowledge impact is assessed through two main variables: (1) employment and destination of graduates, or people impact, and (2) kind of knowledge produced. Cardiff University’s graduates enjoy fullemployment, and according to our conceptual framework, Cardiff’s higher education system is classified as ‘‘nonactive’’ positional competition and ‘‘social’’ knowledge production.