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Local economic development opportunities from NHS spending: Evidence from Wales

Author

Listed:
  • Kevin Morgan

    (School of Geography and Planning, Cardiff University, UK)

  • Max Munday

    (Cardiff Business School, Cardiff University, UK)

  • Annette Roberts

    (Cardiff Business School, Cardiff University, UK)

Abstract

The article examines the local and regional economic impacts of NHS spending. The research is set in the context of tensions between buying economies, process efficiencies and local economic development impacts of public sector procurement, and contributes to the evidence base on supplier proximity and income retention at the local and regional level. The scale, scope and spatial distribution of NHS spending in a South Wales case are analysed using detailed purchasing information provided by a local health board. The article then uses an economic modelling framework to quantify the supply chain impacts of this spending to determine the full regional economic impacts of operational and capital expenditures. The analysis shows that NHS Wales spending supports significant levels of regional economic activity in terms of output, employment and gross value-added. The article also explores scenarios on the potential economic significance of import substitution of selected purchases. The implications of the changing procurement environment, with new EU directives, and a reorganisation of procurement functions within NHS Wales, are explored, and suggestions are made for further research.

Suggested Citation

  • Kevin Morgan & Max Munday & Annette Roberts, 2017. "Local economic development opportunities from NHS spending: Evidence from Wales," Urban Studies, Urban Studies Journal Limited, vol. 54(13), pages 3138-3156, October.
    • Handle: RePEc:sae:urbstu:v:54:y:2017:i:13:p:3138-3156
    DOI: 10.1177/0042098016658248
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    References listed on IDEAS

    as
    1. Kevin Morgan, 2008. "Greening the Realm: Sustainable Food Chains and the Public Plate," Regional Studies, Taylor & Francis Journals, vol. 42(9), pages 1237-1250.
    2. R. Ross Mackay, 2003. "Twenty-five Years of Regional Development," Regional Studies, Taylor & Francis Journals, vol. 37(3), pages 303-317.
    3. Ignazio Cabras, 2010. "Use of E-procurement in Local Authorities' Purchasing and Its Effects on Local Economies: Evidence from Cumbria, UK," European Planning Studies, Taylor & Francis Journals, vol. 18(7), pages 1133-1151, July.
    4. Christopher McCrudden, 2004. "Using public procurement to achieve social outcomes," Natural Resources Forum, Blackwell Publishing, vol. 28(4), pages 257-267, November.
    5. Iain McLean & Alistair McMillan, 2003. "The Distribution of Public Expenditure across the UK Regions," Fiscal Studies, Institute for Fiscal Studies, vol. 24(1), pages 45-71, March.
    6. R. Ross Mackay, 2001. "Regional Taxing and Spending: The Search for Balance," Regional Studies, Taylor & Francis Journals, vol. 35(6), pages 563-575.
    7. Adam M. Williams, 2014. "Local preferencing for local suppliers: examining the use of locality in public procurement," Public Money & Management, Taylor & Francis Journals, vol. 34(3), pages 165-172, May.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Munday, Max & Reynolds, Laura & Roberts, Annette, 2023. "Re-appraising ‘in-process’ benefits of strategic infrastructure improvements: Capturing the unexpected socio-economic impacts for lagging regions," Transport Policy, Elsevier, vol. 134(C), pages 119-127.

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