Dundee Discussion Papers in Economics 103: The illusions, reality and implications of British government expenditure 1948- 1968

This article presents unique industry level data on the level of government purchases from private industry. Utilising input-output data for the years 1948, 1963 and 1968 the paper highlights the importance of government as a consumer for private firms. Government as a consumer is shown to have been most significant for industries that also had high levels of industrial concentration and exports. The article provides an explanation for the government business relationship which is at odds with the bargaining environment approach. The article concludes that the government business relationship from the end of the Second World War onwards was contextualised by cooperation and integration rather than bargaining.