Professors calculate Memorial University's contribution to economy

After more than a year, two professors at Memorial University of Newfoundland have calculated the university's economic worth in dollars and cents.

The president of the universityasked economist Wade Locke to work on the project to help better understand the university's fiscal impacton the province.

According to Locke, Memorial accounts for more than $1billionin overall economic activity per year.

That translates into approximately 11,200 full-time jobs roughly5.6 per cent of the province's employment.

The university pays $560million salaries and generates $250million in revenue for the government.

"The access to the university by Newfoundland has facilitated some of the prosperity that we are now seeing in Newfoundland," Locke told CBC News.

"If it wasn't for the fact that we have a university here you wouldn't see the same level of prosperity and viceversa if it weren't for the same level of prosperity in the economy, the university wouldn't be doing as well as it's doing [either]," said Locke.

Significantrole to play

Coincidentally, the provincial government is doing some number crunching of its own.

Locke said thereport was not meant to coincide with tough budget talks it was commissioned long before the province's fiscal crisis. However, he thinks the university has a significantrole to play.

"The price of oil is going up as we speak today but one of the most important ways that you can diversify your economy and enhance your ability to move forward in terms of economic activity is through providing an educated workforce," Locke said.

"And the more educated you are, the higher will be your productivity, the higher will be your innovation through research and development so the university has an important role to play."

Without a university in the province, Locke said Newfoundlanders and Labradorianswould earn fewer degrees and employment would be down.