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Productivity Growth during the First Industrial Revolution: Inferences from the Pattern of British External Trade

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Author Info
C. Knick Harley (The University of Western Ontario Department of Economics)
N.F.R. Crafts (London School of Economics)

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Abstract

This paper examines British trade and growth in general equilibrium. It rejects Peter Temin's contention that the Crafts-Harley 'new view' of sectorally concentrated productivity growth during the Industrial Revolution is inconsistent with actual industrial exports. A CGE trade model with diminishing returns in agriculture that also emphasizes demand conditions indicates that while technological change in cottons and iron were major spurs to exports, the demand for food imports generated by population growth and diminishing returns in agriculture also stimulated trade. The trade data are compatible with the 'new view' and any implied adjustment to TFP growth estimates is slight.

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Publisher Info
Paper provided by University of Western Ontario, Department of Economics in its series UWO Department of Economics Working Papers with number 9809.

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Date of creation: Oct 1998
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Handle: RePEc:uwo:uwowop:9809

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Postal: Department of Economics, Reference Centre, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2
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Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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  1. Pol Antràs & 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!]
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