Do research universities boost regional economic development? Evidence from China. A new GLO Discussion Paper by GLO Affiliate Shuai Chu and Xiangbo Liu.

A new GLO Discussion Paper finds for China that research universities can have negative effects on local economic development.

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Shuai Chu

GLO Discussion Paper No. 748, 2021

Do research universities boost regional economic development? – Evidence from ChinaDownload 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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