The Impact of the Polytechnic Institute of Setubal on the Local Economy

Abstract

This paper analyses the economic impact of Setubal Polytechnic Institute in the region. Using a demand side approach, this study measures the expenditure of students, academic and nonacademic staff as well as the expenditure of IPS in acquisitions of goods and services, measuring their impact on GDP, employment as well as on total expenditures on the economy. We have applied a questionnaire to a random sample of the target population. The results reveal a strong impact of IPS on the regional economy, estimated at 58 million euros (1,77% of the local GDP) and its relevance on job creation (second biggest employer in Setubal and third in Barreiro). There is also its impact at maintaining youngsters in the region to obtain their tertiary education, as 60% of students in the region stated they would otherwise have studied in another region, had IPS not existed, as well as its capacity to reproduce public investment estimated at more than three euros per euro invested by the State.