A new GLO Discussion Paper finds for China that research universities can have negative effects on local economic development.
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GLO Discussion Paper No. 748, 2021
Do research universities boost regional economic development? – Evidence from China – Download PDF
by Chu, Shuai & Liu, Xiangbo
GLO Affiliate Shuai Chu
Author Abstract: This paper studies whether research universities can boost regional economic development through an exogenous shock of a forced relocation of a research university in China. We analyze the development in the treated regions compared with a set of control regions that are created using the synthetic control method and find that research universities can have negative effects on local economic development. We then perform a series of robustness checks. Our main results carry through. By employing a more exogenous shock and more reliable identification strategies, our study provides evidence that research universities do not necessarily promote regional economic development.
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