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The expenditure impacts of London's higher education institutions: the role of diverse income sources

Year: 2014

Type: article

Abstract: This paper analyses the impact of London-based higher education institutions (HEIs) on the English economy. When we treat each of the HEIs as separate sectors in conventional input-output analysis, their expenditure impacts appear rather homogenous, with the apparent heterogeneity of their overall impacts being primarily driven by scale. However, a disaggregation of income by source reveals considerable variation in their dependence upon public funding and ability to draw in income/funding from external sources. Acknowledging the possible alternative uses of the public funding and deriving balanced expenditure multipliers reveals large differences in the net-expenditure impact with the source of variation being the origin of income. The institutional multiplier is driven by the ability to attract external funding, which would typically favour research-intensive institutions. However, the impacts of students’ consumption expenditures are also significant. In terms of ranking of multipliers the overall results are mixed.

Source: Studies in Higher Education

DOI: 10.1080/03075079.2014.899338

Authors: Kristinn Hermannsson, Katerina Lisenkova, Peter G. McGregor, J. Kim Swales

Institutions: University of Glasgow, National Institute of Economic and Social Research, University of Strathclyde

Language: English

Topic: Human Resources and Workforce

Subfield: Geography, Planning and Development

Field: Social Sciences

Domain: Social Sciences

Open Access status: green