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How did the location of industry respond to falling transport costs in Britain before World War 1?

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  • Nicholas Crafts
  • Abay Mulatu

Abstract

This paper 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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File URL: http://eprints.lse.ac.uk/22555/
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Bibliographic Info

Paper provided by London School of Economics and Political Science, Department of Economic History in its series Economic History Working Papers with number 22555.

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Length: 41 pages
Date of creation: Mar 2004
Date of revision:
Handle: RePEc:ehl:wpaper:22555

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Postal: LSE, Dept. of Economic History Houghton Street London, WC2A 2AE, U.K.
Phone: +44 (0) 20 7955 7084
Web page: http://www.lse.ac.uk/economicHistory/
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References

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  1. 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.
  2. 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.
  3. 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.
  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. 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.
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Cited by:
  1. 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).
  2. Julio Martinez-Galarraga & Joan R. Roses & Daniel A. Tirado Fabregat, 2009. "The Upswing of Regional Income Inequality in Spain (1860-1930)," Working Papers in Economic History wp09-05, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
  3. 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.
  4. Martinez-Galarraga, Julio, 2012. "The determinants of industrial location in Spain, 1856–1929," Explorations in Economic History, Elsevier, vol. 49(2), pages 255-275.
  5. 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.
  6. 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.
  7. Alexander Klein & Nicholas Crafts, 2012. "Making sense of the manufacturing belt: determinants of U.S. industrial location, 1880--1920," Journal of Economic Geography, Oxford University Press, vol. 12(4), pages 775-807, July.
  8. 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.
  9. Alan Fernihough & Kevin Hjortshøj O'Rourke, 2014. "Coal and the European Industrial Revolution," The Institute for International Integration Studies Discussion Paper Series iiisdp439, IIIS.
  10. 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.
  11. Tim Leunig, 2011. "Cart or Horse: Transport and Economic Growth," International Transport Forum Discussion Papers 2011/4, OECD Publishing.
  12. repec:cge:warwcg:04 is not listed on IDEAS
  13. 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.
  14. repec:csg:ajrcwp:1302 is not listed on IDEAS
  15. 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.
  16. 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.

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