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Capital and Economic Growth in Britain, 1270-1870: Preliminary findings

Author

Listed:
  • Broadberry, Stephen

    (Nuffield College, Oxford and CAGE)

  • de Pleijt, Alexandra M.

    (Utrecht University)

Abstract

Estimates of capital formation and the stock of capital in Britain are provided for the period 1270-1870 and used to analyse economic growth. (1) We chart the growing importance of fixed relative to working capital, the declining importance of land and the growth of net overseas assets. (2) Kaldor’s stylised facts of a rising capital-labour ratio and a stationary capital-output ratio are broadly confirmed, but only if attention is confined to fixed capital. (3) Extensive form growth accounts suggest that output growth was driven largely by factor input growth, while intensive form growth accounts suggest that TFP growth was more important than capital deepening in explaining the growth of output per head. (4) The investment share of GDP increased substantially during the transition from pre-industrial to modern economic growth.

Suggested Citation

  • Broadberry, Stephen & de Pleijt, Alexandra M., 2021. "Capital and Economic Growth in Britain, 1270-1870: Preliminary findings," CAGE Online Working Paper Series 546, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:546
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp546.2021.pdf
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    References listed on IDEAS

    as
    1. Nuno Palma, 2018. "Reconstruction of money supply over the long run: the case of England, 1270–1870," Economic History Review, Economic History Society, vol. 71(2), pages 373-392, May.
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    7. Angus Maddison, 1995. "Explaining The Economic Performance Of Nations," Books, Edward Elgar Publishing, number 294.
    8. Clark, Gregory, 2002. "Land rental values and the agrarian economy: England and Wales, 1500–1914," European Review of Economic History, Cambridge University Press, vol. 6(3), pages 281-308, December.
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    Cited by:

    1. Broadberry, Stephen, 2021. "Accounting for the Great Divergence: Recent Findings from Historical National Accounting," CEPR Discussion Papers 15936, C.E.P.R. Discussion Papers.
    2. Kenny, Seán & Lennard, Jason & O'Rourke, Kevin Hjortshøj, 2020. "An annual index of Irish industrial production, 1800-1921," Economic History Working Papers 107427, London School of Economics and Political Science, Department of Economic History.
    3. Lambert, Thomas, 2021. "The Baran Ratio, Investment, and British Economic Growth and Investment," MPRA Paper 109546, University Library of Munich, Germany.
    4. Stephen Broadberry, 2022. "British economic growth and development," Oxford Economic and Social History Working Papers _203, University of Oxford, Department of Economics.
    5. Prados de la Escosura, Leandro, 2022. "The industrial revolution, an unintended consequence of self-defence?," Journal of Global History, Cambridge University Press, vol. 17(1), pages 159-164, March.
    6. Lambert, Thomas, 2022. "British Public Investment, Government Spending, Housing, and the Industrial Revolution: A Study of Governmental and Social Surplus Absorption," MPRA Paper 115196, University Library of Munich, Germany.

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    More about this item

    Keywords

    JEL Classification:;

    JEL classification:

    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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