Reconsidering University Economic Impact: Evidence from Propensity Score Matching Analysis in Rural Bangladesh

International Journal of Humanities and Social Science

© 2025 by SSRG - IJHSS Journal

Volume 12 Issue 2

Year of Publication : 2025

Authors : Khalid Imran, Md. Ahsan Habib, Md. Saddam Hossain, Mehedi Hasan, Fahima Khanam

10.14445/23942703/IJHSS-V12I2P108

How to Cite?

Khalid Imran, Md. Ahsan Habib, Md. Saddam Hossain, Mehedi Hasan, Fahima Khanam, "Reconsidering University Economic Impact: Evidence from Propensity Score Matching Analysis in Rural Bangladesh," SSRG International Journal of Humanities and Social Science, vol. 12,  no. 2, pp. 72-83, 2025. Crossref, https://doi.org/10.14445/23942703/IJHSS-V12I2P108

Abstract:

Universities are increasingly recognized as economic catalysts in rural areas, contributing to employment, technological innovation, and local development. Despite its importance, little empirical data exists about the financial benefits of universities, especially at the household level in rural Bangladesh. With an emphasis on factors like income, spending, borrowing, and saving, this study attempts to investigate the socioeconomic effects of Hajee Mohammad Danesh Science and Technology University (HSTU) on surrounding households. The goal is to offer data-driven insights into how a university's presence changes the local economy. In August 2017, 303 families were surveyed for the study. Propensity Score Matching (PSM) was used to compare households in the treatment group-those within 5 kilometres of HSTU-with those in the control group, those from more remote areas. Monthly expenses, savings, agricultural income, fixed income, and total annual income were among the key outcome variables that were measured. Techniques like kernel matching, nearest neighbour matching, and balance checks were used to ensure reliable results. The findings indicate that households located near the university incur significantly lower monthly expenses, ranging from 2,035 to 3,118 BDT (p < 0.05), and experience reduced loan amounts averaging 63,511 BDT (p = 0.034). However, the analysis also uncovers that their annual fixed income is considerably lower, approximately 7,600 BDT (p < 0.05), suggesting a tendency towards informal employment options. Moreover, there were no statistically significant variations in annual income, savings, or agricultural output. Being close to HSTU clearly impacts economic behaviours; fixed incomes are negatively impacted while expenses are reduced. This shows that specific policies that can strengthen the beneficial economic effects of universities in rural areas are desperately needed. To optimize these advantages, recommendations include enhancing community involvement and offering easily accessible educational initiatives.

Keywords:

University economic impact, Rural Bangladesh, Propensity score matching, Household economics, Regional development.

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