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How Did the Location of Industry Respond to Falling Transport Costs in Britain Before World War I?

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  • CRAFTS, NICHOLAS
  • MULATU, ABAY

Abstract

This article explores the location of industry in pre World War I Britain using a model that takes account both of factor endowment and also of New Economic Geography influences. Broadly speaking, the pattern of industrial location in this period was quite persistent and regional specialization changed little. The econometric results show that factor endowments had much stronger effects than proximity to markets, although the latter was an attraction for industries with large plant size. Overall, falling transport costs had relatively little effect on industrial location at a time when proximity to natural resources, notably coal, mattered most.

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Bibliographic Info

Article provided by Cambridge University Press in its journal The Journal of Economic History.

Volume (Year): 66 (2006)
Issue (Month): 03 (September)
Pages: 575-607

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Handle: RePEc:cup:jechis:v:66:y:2006:i:03:p:575-607_00

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  1. Kim, Sukkoo, 1999. "Regions, resources, and economic geography: Sources of U.S. regional comparative advantage, 1880-1987," Regional Science and Urban Economics, Elsevier, vol. 29(1), pages 1-32, January.
  2. J. David Richardson & Pamela J. Smith, 1995. "Sectoral Growth Across U.S. States: Factor Content, Linkages, and Trade," NBER Working Papers 5094, National Bureau of Economic Research, Inc.
  3. Nicholas Crafts, 2003. "Steam as a general purpose technology: a growth accounting perspective," Economic History Working Papers 22354, London School of Economics and Political Science, Department of Economic History.
  4. Kim, Sukkoo, 1998. "Economic Integration and Convergence: U.S. Regions, 1840–1987," The Journal of Economic History, Cambridge University Press, vol. 58(03), pages 659-683, September.
  5. Frank Geary & Tom Stark, 2002. "Examining Ireland"s Post--famine Economic Growth Performance," Economic Journal, Royal Economic Society, vol. 112(482), pages 919-935, October.
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Cited by:
  1. Jordi Domenech, 2008. "Mineral resource abundance and regional growth in Spain, 1860-2000," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(8), pages 1122-1135.
  2. Klein, Alexander; Crafts, Nicholas, 2010. "Making Sense of the Manufacturing Belt: Determinants of U.S. Industrial Location, 1880-1920," CAGE Online Working Paper Series 04, Competitive Advantage in the Global Economy (CAGE).
  3. repec:cge:warwcg:04 is not listed on IDEAS
  4. Julio Martínez-Galarraga, 2014. "Market potential estimates in history: a survey of methods and an application to Spain, 1867-1930," Working Papers 0051, European Historical Economics Society (EHES).
  5. Dan Liu & Christopher M. Meissner, 2013. "Market Potential and the Rise of US Productivity Leadership," NBER Working Papers 18819, National Bureau of Economic Research, Inc.
  6. Alan Fernihough & Kevin Hjortshøj O'Rourke, 2014. "Coal and the European Industrial Revolution," NBER Working Papers 19802, National Bureau of Economic Research, Inc.
  7. Yochanan Shachmurove, 2007. "Geography and Industry Meets Venture Capital," PIER Working Paper Archive 07-015, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  8. John Tang, 2013. "Railroad expansion and entrepreneurship: Evidence from Meiji Japan," AJRC Working Papers 02, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  9. Yochanan Shachmurove, 2006. "An Excursion into the Venture Capital Industry Stratified by Locations and Industries 1996-2005," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 11(3), pages 79-104, Fall.
  10. Crafts, Nicholas & O’Rourke, Kevin Hjortshøj, 2014. "Twentieth Century Growth*This research has received funding from the European Research Council under the European Union’s Seventh Framework Programme (FP7/2007-2013) / ERC grant agreement no. 249546," Handbook of Economic Growth, in: Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 263-346 Elsevier.
  11. repec:csg:ajrcwp:1302 is not listed on IDEAS
  12. Rosés, Joan Ramón & Martínez-Galarraga, Julio & Tirado, Daniel A., 2010. "The upswing of regional income inequality in Spain (1860-1930)," Explorations in Economic History, Elsevier, vol. 47(2), pages 244-257, April.
  13. Julio Martínez-Galarraga & Daniel A. Tirado-Fabregat & Rafael González-Val, 2014. "Market Potential and Regional Economic Growth in Spain, 1860-1930," Documentos de Trabajo (DT-AEHE) 1409, Asociación Española de Historia Económica.
  14. Tim Leunig, 2011. "Cart or Horse: Transport and Economic Growth," International Transport Forum Discussion Papers 2011/4, OECD Publishing.
  15. Martinez-Galarraga, Julio, 2012. "The determinants of industrial location in Spain, 1856–1929," Explorations in Economic History, Elsevier, vol. 49(2), pages 255-275.
  16. Max-Stephan Schulze, 2007. "Regional income dispersion and market potential in the late nineteenth century Hapsburg Empire," Economic History Working Papers 22311, London School of Economics and Political Science, Department of Economic History.

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