A new report issued by the Department of Economics provides some insight into the magnitrdue of of Florida International University's contributions to the regional economy. The study measures FIU's contributions in several different ways: the monetary value of the human capital produced as a result of the educational services that FIU provides; the amount of regional economic activity that is associated with FIU’s operations; and a traditional measure of the net economic impact of FIU, which measures the difference between the regional output that exists with FIU and the output that we would expect if FIU did not exist.
Some highlights of the report's findings are as follows:
- The value of education produced each year by FIU is about $3.5 billion. The value of the annual production of human capital that remains in the state of Florida is about $2.8 billion, and the value that remains in Miami-Dade County is about $1.8 billion.
- The non-payroll operating expenditures of FIU and the personal expenditures of its employees sustain over ten thousand jobs in Miami-Dade County, 43 percent of which are employees of the university. An additional 271 jobs are supported elsewhere in the state. As an alternative measure of size, the non-payroll operating expenditures of FIU and the personal expenditures of its employees induce $710 million in economic output in Miami-Dade, and an additional $36.3 million elsewhere in the state.
- Expenditures by FIU students not already accounted for in FIU's operating expenditure sustain an additional 7,300 jobs and $724 million in output in Miami-Dade.
- Incremental expenditures induced by the enhancement of FIU alumni income are especially important because of the large number of alumni that remain in the region. Around 78,000 alumni live and work in Miami-Dade, while an additional 40,000 live and work elsewhere in the state. The increments to their incomes resulting from the education obtained at FIU induces economic activity that sustains 14,373 jobs in Miami-Dade and a further 7,322 jobs elsewhere in Florida. This activity amounts to about $1.4 billion in Miami-Dade output and an additional $726 million elsewhere in Florida.
- The net economic impact of FIU's non-payroll operating expenditures and the personal expenditures of its employees at the county level is 7,650 jobs created or $539.8 million of output. The net impact at the level of the state is 2,373 jobs, or $171.7 million.
- The net economic impact of student expenditures at the county level is 3,784 jobs created, equivalent to $375 million in economic output. At the state level, the net impact is 1,266 jobs, or $126 million. The net economic impact of incremental alumni expenditures at the county level is 10,845 jobs created, equivalent to $1.1 billion in economic output. At the state level, the net impact is 1,634 jobs, or $1.6 billion.