The University of Otago and Otago Polytechnic injected $1 billion into Dunedin's economy last year.
Economic impact reports released by both institutions yesterday showed the university contributed $881.1 million, while Otago Polytechnic added $135 million to the city's $5.8 billion GDP.
Both reports measured spending by the institution and its staff and students to determine the value added to the city's economy.
University of Otago planning and funding director David Thomson said the impact of ''hosting a campus in Dunedin'' added $1.55 billion to the economy.
The campus also directly and indirectly supported 13,902 jobs in the city, he said.
''While expenditure by the university and its students has a direct influence on local economic development, the wider flow-on effects are even greater.
''The impacts are far-reaching across many sectors of the economy, with the institution and its staff and students spending widely in local businesses,'' Mr Thomson said.
''This in turn creates additional activity, as these businesses then purchase further goods and services to meet this demand.''
The report was valuable because it quantified the impact of student spending, something which similar reports often ignored, he said.
The report was not to attract people to the institution, but to give a clear picture of the role it played in the city.
''It gives us a bit of a sense of our role in the city and that's a role that adds benefits to the institution, but also comes with responsibilities.''
About 75% of university students, and 57% of polytechnic students came from outside Otago, the reports said.
Otago Polytechnic chief executive Phil Ker said the report showed the institution's significance within the region.
''As one of Dunedin's larger employers, Otago Polytechnic's value to the Otago economy is considerable.''
The report showed Otago Polytechnic added $255million to the region in 2015.
Last year the polytechnic employed 674 staff in Otago, and supported 2454 jobs nationally, Mr Ker said.
University of Otago
•University of Otago contributed $881.1 million to the Dunedin economy last year.
•University of Otago campuses also contributed $51.9 million (Christchurch), $50.5 million (Wellington) and $2.4 million (Invercargill), $800,000 (Auckland Centre and Wellington City Office combined).
•It is among the top 50 largest employers in New Zealand
•85% of students come from outside Dunedin.
•75% from beyond Otago and Southland
•41% from the North Island
•15% from overseas
Otago Polytechnic
•Otago Polytechnic injected $135 million into Dunedin’s economy last year. Total expenditure from Central Otago campus was $13.1 million last year.
•Total value added to the Central Otago economy was $7.2 million.
•2129 jobs in Dunedin were supported as a direct result of Otago Polytechnic expenditure.
•57% of students come from outside Otago
•11% from elsewhere in the South Island
•32% from the North Island
•14% from overseas
