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Deindustrialization in 18th and 19th century India: Mughal decline, climate shocks and British industrial ascent

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  • Clingingsmith, David
  • Williamson, Jeffrey G.

Abstract

India was a major player in the world export market for textiles in the early 18th century, but by the middle of the 19th century it had lost all of its export market and much of its domestic market, primarily to Britain. The ensuing deindustrialization was greatest c1750-c1860. We ask how much of India's deindustrialization was due to local supply-side forces--such as political fragmentation and a rising incidence of drought, and how much to world price shocks. An open, three-sector neo-Ricardian model organizes our thinking and a new relative price database implements the empirical analysis. We find local supply side forces were important from as early as 1700. We then assess the size of Indian deindustrialization in comparison with other parts of the periphery.

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Bibliographic Info

Article provided by Elsevier in its journal Explorations in Economic History.

Volume (Year): 45 (2008)
Issue (Month): 3 (July)
Pages: 209-234

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Handle: RePEc:eee:exehis:v:45:y:2008:i:3:p:209-234

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Web page: http://www.elsevier.com/locate/inca/622830

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References

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  1. Krugman, Paul & Venables, Anthony J., 1994. "Globalization and the Inequality of Nations," CEPR Discussion Papers 1015, C.E.P.R. Discussion Papers.
  2. Broadberry, Stephen N & Gupta, Bishnupriya, 2005. "The Early Modern Great Divergence: Wages, Prices and Economic Development in Europe and Asia, 1500-1800," CEPR Discussion Papers 4947, C.E.P.R. Discussion Papers.
  3. de Vries, Jan, 1994. "The Industrial Revolution and the Industrious Revolution," The Journal of Economic History, Cambridge University Press, vol. 54(02), pages 249-270, June.
  4. Twomey, Michael J., 1983. "Employment in nineteenth century Indian textiles," Explorations in Economic History, Elsevier, vol. 20(1), pages 37-57, January.
  5. Tirthankar Roy, 2002. "Economic History and Modern India: Redefining the Link," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 109-130, Summer.
  6. Wright, Gavin, 1971. "An Econometric Study of Cotton Production and Trade, 1830-1860," The Review of Economics and Statistics, MIT Press, vol. 53(2), pages 111-20, May.
  7. Jeffrey G. Williamson, 2006. "Globalization and the Poor Periphery before 1950," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232502, December.
  8. Williamson, Jeffrey G., 2006. "Globalization, de-industrialization and underdevelopment in the third world before the modern era," Revista de Historia Económica, Cambridge University Press, vol. 24(01), pages 9-36, January.
  9. repec:fth:iniesr:430 is not listed on IDEAS
  10. Brennan Lance & McDonald John & Shlomowitz Ralph, 1994. "Trends in the Economic Well-Being of South Indians under British Rule: The Anthropometric Evidence," Explorations in Economic History, Elsevier, vol. 31(2), pages 225-260, April.
  11. González, Rafael Dobado & Galvarriato, Aurora Gómez & Williamson, Jeffrey G., 2008. "Mexican Exceptionalism: Globalization and De-Industrialization, 1750–1877," The Journal of Economic History, Cambridge University Press, vol. 68(03), pages 758-811, September.
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Cited by:
  1. Jörg Baten & Johan Fourie, 2012. "Slave numeracy in the Cape Colony and comparative development in the eighteenth century," Working Papers 270, Economic Research Southern Africa.
  2. Jeffrey G. Williamson, 2009. "History without Evidence: Latin American Inequality since 1491," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 3, Courant Research Centre PEG.
  3. Broadberry, Stephen; Gupta, 2010. "Indian GDP, 1600 -1870: Some Preliminary Estimates Comparison with Britain," CAGE Online Working Paper Series 07, Competitive Advantage in the Global Economy (CAGE).
  4. Jeffrey G. Williamson, 2009. "Five Centuries of Latin American Inequality," NBER Working Papers 15305, National Bureau of Economic Research, Inc.
  5. Arhan Ertan & Louis Putterman & Martin Fiszbein, 2012. "Determinants and Economic Consequences of Colonization: A Global Analysis," Working Papers 2012-5, Brown University, Department of Economics.
  6. repec:cge:warwcg:80 is not listed on IDEAS
  7. Jeffrey G. Williamson, 2009. "History without Evidence: Latin American Inequality since 1491," NBER Working Papers 14766, National Bureau of Economic Research, Inc.
  8. Roy, Tirthankar, 2011. "Consumption of cotton cloth in India, 1795-1940," CEPR Discussion Papers 8669, C.E.P.R. Discussion Papers.
  9. Broadberry, Stephen & Gupta, Bishnupriya, 2012. "India And The Great Divergence: An Anglo-Indian Comparison Of Gdp Per Capita, 1600-1871," CAGE Online Working Paper Series 81, Competitive Advantage in the Global Economy (CAGE).
  10. Williamson, Jeffrey G., 2009. "History without evidence: Latin American inequality since 1491," Center for European, Governance and Economic Development Research Discussion Papers 81, University of Goettingen, Department of Economics.
  11. Williamson, Jeffrey G., 2009. "History without evidence: Latin American inequality since 1491," Center for European, Governance and Economic Development Research Discussion Papers 81, University of Goettingen, Department of Economics.
  12. Jeffrey G. Williamson, 2010. "Latin American Growth-Inequality Trade-Offs: The Impact of Insurgence and Independence," NBER Working Papers 15680, National Bureau of Economic Research, Inc.
  13. Broadberry, Stephen N & Gupta, Bishnupriya, 2010. "Indian GDP Before 1870: Some Preliminary Estimates and a Comparison with Britain," CEPR Discussion Papers 8007, C.E.P.R. Discussion Papers.

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