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Productivity growth in the Industrial Revolution: a new growth accounting perspective

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Author Info
Nicholas Crafts

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Abstract

The issue of why productivity growth during the British industrial revolution was slow despite the arrival of famous inventions is revisited using a growth accounting methodology based on an endogenous innovation model and the perspective of recent literature on general purpose technologies. The results show that steam had a relatively small and long-delayed impact on productivity growth when benchmarked against later technologies such as electricity or ICT. Even so, technological change including embodiment effects accounted entirely for the acceleration in labor productivity growth that allowed the economy to withstand rapid population growth without a decline in living standards.

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Article provided by Federal Reserve Bank of San Francisco in its journal Proceedings.

Volume (Year): (2002)
Issue (Month): Nov ()
Pages:
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Handle: RePEc:fip:fedfpr:y:2002:i:nov:x:1

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Pol AntrĂ s & Hans Joachim Voth, 2000. "Factor Prices and Productivity Growth During the British Industrial Revolution," Economics Working Papers 495, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  3. Nicholas Oulton, . "ICT and productivity growth in the United Kingdom," Bank of England working papers 140, Bank of England. [Downloadable!]
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  4. Greasley, David & Oxley, Les, 1997. "Endogenous Growth or ?Big Bang?: Two views of the First Industrial Revolution," The Journal of Economic History, Cambridge University Press, vol. 57(04), pages 935-949, December. [Downloadable!]
  5. David, P.A., 1989. "Computer And Dynamo: The Modern Productivity Paradox In A Not-Too Distant Mirror," The Warwick Economics Research Paper Series (TWERPS) 339, University of Warwick, Department of Economics.
  6. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
  7. Crafts, Nicholas & Venables, Anthony J., 2001. "Globalization in History: A Geographical Perspective," CEPR Discussion Papers 3079, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. Crafts, N. F. R., 1995. "Exogenous or Endogenous Growth? The Industrial Revolution Reconsidered," The Journal of Economic History, Cambridge University Press, vol. 55(04), pages 745-772, December. [Downloadable!]
  9. Dale W. Jorgenson & Kevin J. Stiroh, 2000. "Raising the Speed Limit: US Economic Growth in the Information Age," OECD Economics Department Working Papers 261, OECD, Economics Department. [Downloadable!]
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  10. Kevin J. Stiroh, 2002. "Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say?," American Economic Review, American Economic Association, vol. 92(5), pages 1559-1576, December. [Downloadable!]
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  11. Harley, C. Knick, 1982. "British Industrialization Before 1841: Evidence of Slower Growth During the Industrial Revolution," The Journal of Economic History, Cambridge University Press, vol. 42(02), pages 267-289, June. [Downloadable!]
  12. Dirk Pilat & Frank C. Lee, 2001. "Productivity Growth in ICT-producing and ICT-using Industries: A Source of Growth Differentials in the OECD?," OECD Science, Technology and Industry Working Papers 2001/4, OECD, Directorate for Science, Technology and Industry. [Downloadable!]
  13. Crafts, N. F. R., 1980. "National income estimates and the British standard of living debate: A reappraisal of 1801-1831," Explorations in Economic History, Elsevier, vol. 17(2), pages 176-188, April. [Downloadable!] (restricted)
  14. Robert J. Barro & Paul Romer, 1993. "Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number barr93-1.
    Other versions:
    • Robert J. Barro & Paul M. Romer, 1991. "Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number barr91-1.
  15. Devine, Warren D., 1983. "From Shafts to Wires: Historical Perspective on Electrification," The Journal of Economic History, Cambridge University Press, vol. 43(02), pages 347-372, June. [Downloadable!]
  16. Crafts, N. F. R. & Mills, Terence C., 1997. "Endogenous Innovation, Trend Growth, and the British Industrial Revolution: Reply to Greasley and Oxley," The Journal of Economic History, Cambridge University Press, vol. 57(04), pages 950-956, December. [Downloadable!]
  17. Barro, Robert J, 1999. " Notes on Growth Accounting," Journal of Economic Growth, Springer, vol. 4(2), pages 119-37, June. [Downloadable!] (restricted)
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  18. Harley, C. Knick & Crafts, N.F.R., 2000. "Simulating the Two Views of the British Industrial Revolution," The Journal of Economic History, Cambridge University Press, vol. 60(03), pages 819-841, September. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alessandro Nuvolari & Valentina Tartari, 2009. "Mr. Woodcroft and the Value of English Patents, 1617-1841," LEM Papers Series 2009/03, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  2. Robert Allen, 2007. "Engel's Pause: A Pessimist's GUide to the British Industrial Revolution," Economics Series Working Papers 315, University of Oxford, Department of Economics. [Downloadable!]
  3. Henrekson, Magnus & Edquist, Harald, 2006. "Technological Breakthroughs and Productivity Growth," Working Paper Series 665, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  4. Edquist, Harald, 2005. "Do hedonic price indexes change history? The case of electrification," Working Paper Series in Economics and Finance 586, Stockholm School of Economics, revised 28 Feb 2005. [Downloadable!]
  5. Malcolm Anderson, 2005. "Accounting history publications 2004," Accounting, Business and Financial History, Taylor and Francis Journals, vol. 15(2), pages 217-221, July. [Downloadable!] (restricted)
  6. Robert C. Allen, 2005. "Capital Accumulation, Technological Change, and the Distribution of Income during the British Industrial Revolution," Economics Series Working Papers 239, University of Oxford, Department of Economics. [Downloadable!]
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