The differential economic effects of private universities in urban and rural regions


Krieger, Bastian ; Kroll, Henning ; Schubert, Torben ; Strecke, Linus ; Garcia Chavez, Cecilia


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URN: urn:nbn:de:bsz:180-madoc-728100
Document Type: Working paper
Year of publication: 2026
The title of a journal, publication series: ZEW Discussion Papers
Volume: 26-020
Place of publication: Mannheim
Edition: May 2026
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: O12 , O18 , O38 , O47,
Keywords (English): regional growth , private universities , place-based leadership , urban-rural
Abstract: This paper investigates whether the local economic effects of niche university actors depend on regional context. Focusing on private university campuses in Germany, it exploits their staggered foundation between 1990 and 2020 and estimates 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 the argument that niche universities have greater potential to become significant actors in institutionally thinner rural regions.




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