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Making sense of the manufacturing belt: determinants of U.S. industrial location, 1880--1920

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  • Alexander Klein
  • Nicholas Crafts

Abstract

This paper investigates the ability of the new economic geography to explain the persistence of the manufacturing belt in the United States around the turn of the 20th century using a model which subsumes both market-potential and factor-endowment arguments. The results show that market potential was central to the existence of the manufacturing belt, that it mattered more than factor endowments, and that its impact came through interactions both with scale economies and with linkage effects. Natural advantage played a role in industrial location but only through agricultural inputs which were important for a small subset of manufacturing.(First published March 2010, revised October 2010)

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Oxford University Press in its journal Journal of Economic Geography.

Volume (Year): 12 (2012)
Issue (Month): 4 (July)
Pages: 775-807

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Handle: RePEc:oup:jecgeo:v:12:y:2012:i:4:p:775-807

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References

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  1. Head, Charles Keith & Mayer, Thierry, 2002. "Market Potential and the Location of Japanese Investment in the European Union," CEPR Discussion Papers 3455, C.E.P.R. Discussion Papers.
  2. Redding, Stephen J & Venables, Anthony J., 2000. "Economic Geography and International Inequality," CEPR Discussion Papers 2568, C.E.P.R. Discussion Papers.
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  7. Meyer, David R., 1989. "Midwestern Industrialization and the American Manufacturing Belt in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 49(04), pages 921-937, December.
  8. Nicholas Crafts & Abay Mulatu, 2004. "How did the location of industry respond to falling transport costs in Britain before World War 1?," Economic History Working Papers 22555, London School of Economics and Political Science, Department of Economic History.
  9. Davis, Donald R. & Weinstein, David E., 1999. "Economic geography and regional production structure: An empirical investigation," European Economic Review, Elsevier, vol. 43(2), pages 379-407, February.
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  11. Thijs Knaap, 2005. "Trade, Location, and Wages in the United States," Working Papers 05-30, Utrecht School of Economics.
  12. Krugman, Paul, 1991. "History and Industry Location: The Case of the Manufacturing Belt," American Economic Review, American Economic Association, vol. 81(2), pages 80-83, May.
  13. Holger C. Wolf, 2000. "Intranational Home Bias In Trade," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 555-563, November.
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  15. Goldin, Claudia, 1998. "America's Graduation from High School: The Evolution and Spread of Secondary Schooling in the Twentieth Century," Scholarly Articles 2664307, Harvard University Department of Economics.
  16. John Shea, 1997. "Instrument Relevance in Multivariate Linear Models: A Simple Measure," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 348-352, May.
  17. Davis, Donald R. & Weinstein, David E., 2003. "Market access, economic geography and comparative advantage: an empirical test," Journal of International Economics, Elsevier, vol. 59(1), pages 1-23, January.
  18. Paul Krugman, 1992. "A Dynamic Spatial Model," NBER Working Papers 4219, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Alan Fernihough & Kevin Hjorstshøj O’Rourke, 2014. "Coal and the European Industrial Revolution," Oxford University Economic and Social History Series _124, Economics Group, Nuffield College, University of Oxford.
  2. Nicholas Crafts & Alexander Klein, 2013. "Geography and Intra-National Home Bias: U.S. Domestic Trade in 1949 and 2007," Studies in Economics 1302, Department of Economics, University of Kent.
  3. Julio Martinez-Galarraga, 2010. "The determinants of industrial location in Spain, 1856-1929," Working Papers in Economics 244, Universitat de Barcelona. Espai de Recerca en Economia.
  4. José Aguilar-Retureta, 2014. "The GDP per capita of the Mexican regions (1895-1930): new estimates," Documentos de Trabajo (DT-AEHE) 1415, Asociación Española de Historia Económica.
  5. 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.
  6. 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.
  7. repec:cge:warwcg:111 is not listed on IDEAS
  8. 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).

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