Assessment of the Economic Impact of Universities on Their Local Businesses: the Case of Izmir University of Economics

Universities are continually challenged to streamline their programs and investments to a progressive society. Both students and local businesses relay on universities to provide individual, social and economic impacts on the community. In this paper, an analysis of universities as a source of financial stability and investment within localities is discussed. Focus is placed on the implementation of economic practices between the Izmir University of Economics and the district of Izmir, Balçova. The study employs several descriptive statistics and multiple logistic regression model to analyze a detailed survey of 168 local businesses. The results of this economic impact study shows that students, faculty, staff and university expenditures may have an increased positive effect on the local economy. Local businesses continue to find the university and its community as keys to their financial success. This impact on the local and city economy has a possibility of generating significantly greater returns in the near future.

Anahtar Kelimeler:

Ekonomik Etki; Üniversite; Yerel İşletme; Çoklu

Assessment of the Economic Impact of Universities on Their Local Businesses: the Case of Izmir University of Economics

Universities are continually challenged to streamline their programs and investments to a progressive society. Both students and local businesses relay on universities to provide individual, social and economic impacts on the community. In this paper, an analysis of universities as a source of financial stability and investment within localities is discussed. As a pinnacle of income generation, universities create employment opportunities; train and re-train workers and can provide other goods and services to the surrounding region. More notable programs include health care provision at teaching hospitals, improved housing and infrastructure, community development and service projects. Government and civic partnerships with universities can harvest positive relations in the locality. While universities provide substantial economic benefits to the surrounding areas, some negative economic practices counteract the investments. Generally, these concerns of economic instability and hindered relations can be diminished by strategic planning and investment optimization. Throughout the compilation of this article, focus is placed on the implementation of favorable economic practices between the Izmir University of Economics and the district of Izmir, Balçova, employing several descriptive statistics and logistic regression model to analyze a detailed survey of 168 local businesses.

Keywords:

Economic Impact; University; College; Higher Education,

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