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The impact of higher education institutions on the UK economy

Kelly, Ursula and Marsh, Richard and McNicoll, Iain (2002) The impact of higher education institutions on the UK economy. University of Strathclyde. ISBN 1-84038-078-x

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Abstract

This study presents an up-to-date analysis of the impact of UK higher education institutions on the economy of the United Kingdom during the academic and financial year 1999/2000. It examines the role of higher education as a conventional industry and the economic activity generated in the UK as a result of higher education activity.The UK higher education institutions (HEIs) included in this study are the 170 institutions returned to the Higher Education Statistics Agency (HESA) in the academic and financial year 1999/2000. The higher education sector is defined as comprising the UK HEIs plus all overseas students and overseas visitors to UK HEIs in the study year.Key economic aspects of UK higher education institutions, in terms of income, expenditure and employment, are examined together with the secondary or 'knock-on' effects of UKHEI activity and that of the expenditure of overseas students and overseas visitors attracted to the UK by HEIs. The study additionally highlights the skills profile of employment generated by UK HEIs and by overseas student and visitor expenditure. The overall impact of the higher education sector on the economy was estimated using aspecially constructed type 11 UK input-output model, with data derived from the 1998 UK input-output tables together with 1998 Labour Force Survey data.