British Industrialization and the Profit Constraint Hypothesis: The Case of a Manchester Cotton Enterprise, 1798-1827
AbstractThis paper test the hypothesis that capital market imperfections constrained the growth of British firms during the Industrial Revolution. Using data on the cost structure of a representative British cotton manufacturer during the 1798 to 1827 period, this paper shows that the scale of operation was too small. The findings suggests that industrialization could have proceeded more rapidly if firms would have had access to alternative sources of capital financing.
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Bibliographic InfoPaper provided by EconWPA in its series Economic History with number 9612003.
Length: 14 pages
Date of creation: 10 Dec 1996
Date of revision:
Note: Type of Document - Word 7.0; prepared on IBM PC Pentium running Windows95; to print on HP laserjet 4; pages: 14; figures: none
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Industrial Revolution; capital markets; cotton manufacturing;
Find related papers by JEL classification:
- N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Braeutigam, Ronald R. & Daughety, Andrew F., 1983. "On the estimation of returns to scale using variable cost functions," Economics Letters, Elsevier, vol. 11(1-2), pages 25-31.
- S. D. Chapman, 1979. "Financial Restraints on the Growth of Firms in the Cotton Industry, 1790–1850," Economic History Review, Economic History Society, vol. 32(1), pages 50-69, 02.
- Braeutigam, Ronald R & Daughety, Andrew F & Turnquist, Mark A, 1982. "The Estimation of a Hybrid Cost Function for a Railroad Firm," The Review of Economics and Statistics, MIT Press, vol. 64(3), pages 394-404, August.
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