New research from the Kem C. Gardner Policy Institute at the University of Utah’s David Eccles School of business concludes that on the whole, the Utah economy is larger and more prosperous because of globalization. Globalization is defined as the process by which businesses or other organizations develop international influence or start operating on an international scale.
Data on Utah’s foreign-born, refugee resettlement, international travel and international students also reinforce the positive economic impacts of globalization on the state economy, the reports says.
“While some may portray free trade and open borders as threatening, the data suggest such a negative view is not warranted for Utah,” said Jim Wood, Ivory-Boyer senior fellow at the Gardner Institute and author of the study. “Overall, the state economy has seen positive effects from globalization.”
Highlights from the report include the following:
• Utah’s 2015 international goods exports (non-gold) supported $3.5 billion in earnings and 84,367 jobs and added $6.7 billion to Utah’s gross domestic product.
• Utah has been largely shielded from the economic shocks of free trade due to the state’s low concentration of import-vulnerable manufacturing jobs.
• Immigration is a vital source of labor supply for Utah employers. The state has nearly 172,200 foreign-born workers making up 12.5 percent of the Utah’s workforce.
• Approximately 7 percent of the 116,600 students enrolled in the Utah System of Higher Education are international students.
“This report reaffirms the need for global engagement to generate sustained economic growth and reveals many assets to build on,” said Marek Gootman, fellow and director of strategic partnerships and global initiatives at the Brookings Institution. “The report reinforces the value of new efforts by business, government and civic leaders to strengthen the international economic connections and competitiveness of Utah and its regions.”
The report is the inaugural edition of the Gardner Business Review, which shares applied economic analysis by the David Eccles School of Business. The report was shared with attendees of “Metro Solutions: A Framework for Regional Growth, Prosperity, and Inclusion,” an event hosted by Salt Lake County, with participation by the Brookings Institution.
The Kem C. Gardner Policy Institute at the University of Utah enhances Utah’s economy by placing data-driven research into the hands of decision-makers. Housed within the David Eccles School of Business, its mission is to develop and share economic, demographic and public policy data and research that help community leaders make informed decisions. Located at the newly restored Thomas S. Monson Center on South Temple., the institute serves as a vital gathering place and center for independent economic, demographic and public policy thought leadership, according to the organization’ s published purpose.
