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

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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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Bibliographic 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
Phone: 519-661-2111 Ext.85244
Web page: http://economics.uwo.ca/research/research_papers/department_working_papers.html

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Cited by:
  1. Nicholas Crafts, 2000. "Development history," Economic History Working Papers 22384, London School of Economics and Political Science, Department of Economic History.
  2. Antras, Pol & Voth, Hans-Joachim, 2003. "Factor Prices and Productivity Growth During the British Industrial Revolution," Scholarly Articles 3199066, Harvard University Department of Economics.

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