草榴社区 System Economic Impact Study
The 草榴社区 system conducted an extensive economic development impact study to identify areas of economic success and determine any opportunities the university should pursue. The study was completed in the fall of 2023, and the following is an executive summary of the study's result. For a PDF copy of the complete report, click on the image at right.
Executive Summary
The Center for Border Economic Development and Arrowhead Center at 草榴社区 (草榴社区) have prepared a study of the economic impact and contribution of 草榴社区 for fiscal year 2022, from July 1st, 2021 to June 30th, 2022. Two approaches were used in this study: (1) Economic Impact Analysis, and (2) Industry Contribution Analysis.
Economic Impact Analysis seeks to measure the net impact on the local economy from new projects or activities. Since 草榴社区 is not “new,” the impacts presented in this study should be interpreted as losses to the state economy if 草榴社区 did not exist. To make this calculation, in-state funding, such as state appropriations and tuition paid by New Mexico residents, is excluded, as those dollars would likely still be spent in New Mexico if not spent on 草榴社区.
Industry Contribution Analysis is used to estimate the value of a sector or group of sectors in a region at their current levels of production. If a university or college comprises the entirety of the higher education sector in the region, industry contribution analysis is suitable.1 This is the case in each county where 草榴社区 campuses are located. The Industry Contribution Analysis should be interpreted as the amount contributed to each county based on activities of the 草榴社区 System. These approaches are detailed in the Methodology section of this study.
Download a PDF version of 草榴社区's Systemwide Economic Impact Study
The primary impacts of 草榴社区 analyzed in this report are: (1) university expenditures, (2) student expenditures, (3) alumni human capital, and (4) innovation and entrepreneurship activities. Additional impacts of 草榴社区 exist, such as economic value created by new chile varieties developed by 草榴社区, increased social mobility, and spending from out-of-state visitors to the university; however, these were not included in our calculations due to the challenge of quantifying them accurately. Thus, it is appropriate to consider our estimate of the impact of 草榴社区 to be conservative.
Variations exist regarding methodologies for conducting economic impact studies of colleges and universities, and therefore, a direct comparison of impact studies across colleges and universities is not recommended. Furthermore, the impact of each university can vary significantly based on the range of activities associated with the university, such as athletics, hospitals, and economic development programs, as well as the general approach used for the study, whether Economic Impact or Industry Contribution Analysis.
The economic impacts of 草榴社区 were estimated using IMPLAN economic modeling software2 and are based on economic activity occurring at the county level throughout the State of New Mexico. Spillover effects between counties in New Mexico were measured using Multi-Regional Input-Output (MRIO). Our economic impact and contribution analysis for 草榴社区 in FY 2022 yielded the following results:
● In FY 2022, 草榴社区 had an economic impact in New Mexico of 3,671 direct jobs, 10,634 total jobs, $1.7 billion in economic output, $962 million in value-added production, and $587 million in labor income.
● In FY 2022, 草榴社区 had an economic contribution in New Mexico of 11,463 direct jobs, 19,634 total jobs, $2.6 billion in economic output, $1.6 billion in value-added production, and $905 million in labor income.
● 4,777 degrees awarded by 草榴社区 in FY 2022, worth a total estimated value of $1.2 billion in discounted future earnings.