External firm confirms NDSU is one of the state’s largest contributors to the economy
Extensive external analysis shows North Dakota State University is a major economic engine for the region and that graduates enjoy a substantial return on their educational investments at NDSU.
According to the study, conducted by Economic Modeling Specialists International of Moscow, Idaho, NDSU has an $884 million economic impact annually, which is equivalent to about 1.9 percent of the regional economy.
The economic effects are the result of:
NDSU operations. Through salary, operating and capital expenditures, NDSU contributes about $201.2 million to the region’s economy each year. Of that, approximately $74.8 million come from NDSU research activities.
Student and visitor spending. Students from outside the region spend about $25.1 million on housing, transportation, entertainment and personal expenses. NDSU also draws more than 354,400 visitors each year who spend money on lodging, food and other items. The study estimates visitors add about $2.9 million to the region’s economy.
Former students. As a skilled workforce with higher incomes, former students add $655.4 million to the region’s economy. The study showed the average income of someone with an NDSU bachelor’s degree is $58,200, compared with $30,000 for someone with a high school diploma. The higher earnings and associated increases in state income expand the tax base in North Dakota by about $83.6 million each year.
NDSU graduates have a 14.4 percent average rate of return on their NDSU educational investments. A graduate recovers all costs, including tuition, fees and forgone wages in an average of 10.6 years. During the course of his or her career, the average NDSU student’s inflation-adjusted lifetime income increases by $5.23 for every $1 invested in his or her NDSU education.