Measuring the economic impact of universities operating in unstable environments: The case of a private institution in Lebanon

Abstract

This paper evaluates the economic impact of a university in a country characterised by the scarcity of significant data and quantitative information. It uses an input–output model that permits the use of gross domestic product (GDP) deflators to portray the economy of years following a year for which a complete data set input is possible. Using commonly available administrative data, the model not only allows for the calculation of monetary multipliers but also employment multipliers that play a major role in the educational sector. The study highlights the role of Higher Education in promoting economic development, even under difficult political, economic and security conditions, where lack of stability is the norm and aims to demonstrate that not only well‐known historically grounded universities have significant economic impact but also smaller emerging universities play an important role in the development of their national economies.

Contributions of Ame University to the Economy of Its Environment

“…This suggests that the presence of AMEU has had a positive effect on the local economy by attracting new businesses and organizations to the area. Nauffal, highlighted the role of higher education institutions in promoting economic development, even under difficult political, economic, and security conditions, where lack of stability is the norm (Nauffal, 2019). He concluded that not only well-known, historically grounded universities have significant economic impact but also smaller emerging universities play an important role in the development of their national economies.…”

“…Visitors to any university town will notice that institutions of higher learning have an impact on the surrounding environment that goes far beyond their gates (Nauffal, 2019). Universities are naturally expected to have a significant economic impact on their local communities and regions.…”

“…Universities are naturally expected to have a significant economic impact on their local communities and regions. A classic example might be Cambridge, MA, or Palo Alto, CA, which are unthinkable without Harvard and Stanford universities (Nauffal, 2019). Although the contribution of universities to the local economy, understood as both direct and indirect effects on employment and overall economic development, is readily apparent, there have been relatively few attempts in the academic literature to evaluate the various ways in which this impact manifests itself, either quantitatively or qualitatively.…”

The Influence of Transformational and Transactional Leadership on Organisational Performance: A Case of a Higher Education Institution in Tanzania

“…Universities and higher learning in general play a significant role in social, political and economic development of individuals, local communities, countries and the world at large. These are places where knowledge is generated and disseminated and therefore they are directly involved in the fight against poverty, diseases and ignorance (Chankseliani et al, 2021;Nauffal, 2019;Valero & Van Reenen, 2019). In Tanzania, like in other developing countries, universities have been criticised for not meeting various stakeholders' expectations especially in producing competent graduates and offering solutions to various problems that societies are facing (Mwita, 2018).…”