Abstract
Purpose
The purpose of this study is to investigate the relationship between the US News and World Report's competitive ratings of US universities with various state level demographic variables using cross‐sectional data.
Design/methodology/approach
Secondary data for the study were collected from the US News and World Report, Demographics USA, other US statistical sources. Regression and correlation analysis determined the relationships.
Findings
Findings indicate that the competitive rating of the US News and World Report universities can be explained by the Buying Power Index (BPI) of the state in which the university is located, per capita federal transfer payments in education, and proportion of out‐of‐state students. International students and ethnic enrollment also show some relationship with competitive rating. Diversity adds to competitiveness. The ratings of the universities are related to the BPI of the state and per capita federal transfer, both of which are uncontrollable variables for the university administrators.
Research limitations/implications
One‐year cross‐sectional data and quasi‐scientific rating of US News and World Report pose to be a limitation of the study. Longitudinal data could better substantiate the findings of the study.
Originality/value
Shows how universities can improve their competitiveness by bringing more diversity to their student body as out‐of‐state students, international students and/or ethnic diversity seem to influence the competitiveness ratings.