Do research universities boost regional economic development? -A case study of University of Science and Technology of China

This study examines the interactions between the presence of research universities and regional economic development, drawing on the event of the forced relocation of the University of Science and Technology of 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 may slow regional economic development. We then perform a series of robustness checks, and the main results carry through. By using more exogenous shocks and a more rational identification strategy, our study provides new evidence that research universities do not necessarily boost regional economic development.