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How Did the Location of Industry Respond to Falling Transport Costs in Britain Before World War I?

  • CRAFTS, NICHOLAS
  • MULATU, ABAY

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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Article provided by Cambridge University Press in its journal The Journal of Economic History.

Volume (Year): 66 (2006)
Issue (Month): 03 (September)
Pages: 575-607

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Handle: RePEc:cup:jechis:v:66:y:2006:i:03:p:575-607_00
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  1. Nicholas Crafts, 2004. "Steam as a general purpose technology: A growth accounting perspective," Economic Journal, Royal Economic Society, vol. 114(495), pages 338-351, 04.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
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  1. Historical Economic Geography

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