Industrialization and urbanization are seen as interdependent processes of modern economic development. However, the exact nature of their causal relationship is still open to considerable debate. This paper uses firm-level data from the manuscripts of the decennial censuses between 1850 and 1880 to examine whether the adoption of the steam engine as the primary power source by manufacturers during industrialization contributed to urbanization. While the data indicate that steam-powered firms were more likely to locate in urban areas than water-powered firms, the adoption of the steam engine did not contribute substantially to urbanization.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
11206.
Length: Date of creation: Mar 2005 Date of revision: Handle: RePEc:nbr:nberwo:11206
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Find related papers by JEL classification: N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative N90 - Economic History - - Regional and Urban History - - - General, International, or Comparative R38 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Government Policies; Regulatory Policies
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