The economic impact of higher education institutions

In the context of Ireland there is scarce evidence of the economic impact of higher education institutions (HEIs). Building upon previous research that undertakes such an analysis using input-output approaches, this chapter contributes to our knowledge in two respects. First, it adopts a Keynesian multiplier approach and thus enables comparisons between the results of the two methods. Second, it allows a closer examination of the role of HEIs at the regional level. In line with existing evidence, this chapter finds that both Irish universities and institutes of technology are a significant economic force in the economy. It also identifies a negative relationship between the estimated multipliers and the size of institutions as measured by total expenditure.