Contact: Ellen Bank
843.792.2626
June 9, 2003
CHARLESTON, SC -- A new economic impact study measures the increase in the
tri-county’s economic activity attributable to the presence of the Medical
University of South Carolina.
Major findings of the study conducted by Frank Hefner, Ph.D., an associate
professor of economics at the College of Charleston and an economic consultant,
are:
•For FY 2002, 29,362 jobs are attributable to the existence of the university,
the university hospital authority (medical center) and the University Medical
Associates (the faculty practice plan).
•The impact of MUSC spending in the economy for FY 2002 is $1.6 billion.
This includes direct spending by the university and additional spending generated
as the original dollars spent ripple through the economy. Construction spending
is not included.
•MUSC’s economic impact exceeds that of the South Carolina Ports
Authority. A recent study analyzing the port’s impact by the Center for
Economic Forecasting at Charleston Southern University attributed 281,660 employee
years of work statewide over the next 35 years to the port. Using a very conservative
approach, the MUSC impact study found that MUSC will generate more than 290,000
employees years of work within the decade.
The economic impact study separately examines research and construction
expenditures. While the impact of research expenditures is already imbedded
in his study, Heffner emphasizes the importance of research dollars in that
these dollars represent outside impacts on the local economy. He reports that
research expenditures are rising extremely rapidly and are anticipated to reach
$221.6 million by FY 2006.
Construction expenditures are reported as a separate category in the economic
impact study. These expenditures further increase the university’s economic
impact on the tri-county area. Looking at construction expenditures at MUSC
between 1998 and 2002, Heffner found that initial spending of $157 million rippled
through the economy, bringing the total economic impact to $245 million. This
generated income of $83 million and created 2,576 jobs. Planned expansion of
the university will bring sustained positive economic growth through future
construction expenditures.
Heffner, in his study, emphasized that the standard tools of economic analysis do not capture some of the most important regional economic benefits resulting from the university. One of the long-term benefits of education is the higher earning potential of graduates. Additionally, it has been shown that retirees are a valuable part of the economic development portfolio, and retirees are attracted to locations with superior medical facilities.
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