A permanent increase in university funding could be a cornerstone to the government’s goal of closing the gap with Australia by 2025.
NZIER and Universities New Zealand – Te Pōkai Tara joined research forces to see what impact increased tertiary funding would have on GDP.
The resulting report concluded government investment in New Zealand’s universities would provide a significant permanent increase to GDP.
To illustrate the effects of increased funding on the economy, the researchers modeled an additional $40 million in university teaching and research for each of the next five years - $200 million in total.
The research showed the return on investment would be an increase in GDP of 0.12% per year, amounting to $370 million per year by 2025.
Within 15 years, the additional investment in universities would be returning 1.85 times the value in GDP every year, according to the study results.
According to the report the additional funding should be invested largely in undergraduate bachelor’s degrees that can promise higher returns.
Lower level sub-degree qualifications such as certificates and diplomas, or higher – such as postgraduate studies – would not provide the same gains for the economy.
The government currently invests just over $1 billion a year in universities and a similar amount in financial support for university students.
Universities NZ chairman Derek McCormack said a permanent increase in university funding would result in even greater and increasing returns to GDP over time.
“The reality is that government funding for New Zealand’s universities has been declining in real terms year after year.
“The report highlights the significant lost opportunity that is a result.”
The Australian government significantly increased levels of investment in education, after a similar report with similar finding was carried out by KPMG EconTech for Universities Australia in 2009.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- iPredict closing down due to money laundering risk
- Xero directors Drury, Winkler and Morgan cash in on 35% share price rally
- Serco's prison report challenge: Hide and Davis go head-to-head
- MARKET CLOSE: NZ shares mixed; Spark, Fletcher join Asian rally, Xero drops as Drury trims stake
- Honey exporter's manuka brands stung
Most listened to
- “A very ballsy thing to do” – Rodney Hide and Kelvin Davis discuss Serco’s response to Correction’s Mt Eden Prison report
- “The response from shareholders has been overwhelming” — A2 Corporation chief executive Geoff Babidge
- Greg Gent says a board of 13 people is "prehistoric"
- Arvida CEO Bill McDonald on his company's half-year net profit
- Lance Wiggs on the future of food exports
- Auckland Councillor Chris Darby on the Council's alternative funding report
- Nevil Gibson discusses his latest Editor's Insight on oil prices
- Campbell Gibson, Nick Grant and Chelsea Armitage chat about the inner workings of New Zealand media
- Paul Brislen discusses the 'snake oil' sales tactics of SalesConcepts
- Fonterra chief executive Theo Spierings reveals his ambitious China plan
- UDC Finance chief executive Wayne Percival talks about the company's profit
- Hamish McNicol discusses the latest court stories