Scandinavian Working Papers in Economics
Papers in Innovation Studies,
Lund University, CIRCLE - Centre for Innovation Research
No 2026/5: The Differential Economic Effects of Private Universities in Urban and Rural Regions
Bastian Krieger (), Henning Kroll, Torben Schubert (), Linus Strecke and Cecilia Garcia Chavez
Additional contact information
Bastian Krieger: ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung; TUM – Technische Universität München, Postal: Germany
Henning Kroll: Fraunhofer ISI; Leibniz Universität Hannover, Postal: Germany
Torben Schubert: Fraunhofer ISI; CIRCLE, Lund University, Postal: Germany / Sweden
Linus Strecke: ZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung; TU Berlin, Postal: Germany
Cecilia Garcia Chavez: Fraunhofer ISI; CIRCLE, Lund University, Postal: Germany / Sweden
Abstract: We investigate whether the local economic effects of niche university actors depend on regional context. Focusing on private university campuses in Germany, we exploit their staggered foundation between 1990 and 2020 and estimate their effects using a conditional staggered difference-in-differences design at the postal-code level. Campus foundations raise local economic activity, but only gradually, with effects becoming statistically significant after about ten years. The effects are strongest in rural and intermediate regions, while urban regions show no significant effects. This pattern supports our argument that niche universities have greater potential to become significant actors in institutionally thinner rural regions.
Keywords: Regional growth; Private universities; Place-based leadership; Urban-rural
Language: English
31 pages, September 25, 2026
Note: This research was funded by the German Federal Ministry of Research, Technology, and Space (BMFTR), grant numbers 16NISTA04A and 16NISTA04B.
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