Measuring the economic impact of a HEI in a deprived region of Portugal

Abstract

This paper describes an economic impact study conducted for a Portuguese Higher Education Institution - the Polytechnic Institute of Bragança, located on the region of Bragança, a very isolated and deprived region of northeast Portugal. Two approaches were followed. The traditional economic approach – based on the study of Caffrey and Isaacs (1971) - to determine the economic impact that arises from the expenditure of the IPB and its individuals; and the skills-based approach – based on Becker (1993) and Bluestone’s (1993) works – to measure the creation of human capital and the enhancement of local individuals’ life quality. To achieve these purposes it was necessary to conduct surveys among the faculty, staff, students and graduates of the IPB, as well as to collect data from IPB’s records and official sources. Following these two approaches, the total impact of the IPB in the region was determined, reaching 55 and 61 million euros, respectively.