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Deindustrialization in 18th and 19th century India: Mughal decline, climate shocks and British industrial ascent

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  • Clingingsmith, David
  • Williamson, Jeffrey G.

Abstract

India was a major player in the world export market for textiles in the early 18th century, but by the middle of the 19th century it had lost all of its export market and much of its domestic market, primarily to Britain. The ensuing deindustrialization was greatest c1750-c1860. We ask how much of India's deindustrialization was due to local supply-side forces--such as political fragmentation and a rising incidence of drought, and how much to world price shocks. An open, three-sector neo-Ricardian model organizes our thinking and a new relative price database implements the empirical analysis. We find local supply side forces were important from as early as 1700. We then assess the size of Indian deindustrialization in comparison with other parts of the periphery.

Suggested Citation

  • Clingingsmith, David & Williamson, Jeffrey G., 2008. "Deindustrialization in 18th and 19th century India: Mughal decline, climate shocks and British industrial ascent," Explorations in Economic History, Elsevier, vol. 45(3), pages 209-234, July.
  • Handle: RePEc:eee:exehis:v:45:y:2008:i:3:p:209-234
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    References listed on IDEAS

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    1. Tariff Protection of British cotton 1774-1820s
      by pseudoerasmus in Pseudoerasmus on 2016-12-19 06:01:20

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    Cited by:

    1. Broadberry, Stephen & Custodis, Johann & Gupta, Bishnupriya, 2015. "India and the great divergence: An Anglo-Indian comparison of GDP per capita, 1600–1871," Explorations in Economic History, Elsevier, vol. 55(C), pages 58-75.
    2. Jeffrey G. Williamson, 2009. "Five Centuries of Latin American Inequality," NBER Working Papers 15305, National Bureau of Economic Research, Inc.
    3. Shi Zhihong Yuping & Xuyi & Ni Yuping & Bas van Leeuwen, 2015. "Chinese National Income, ca. 1661-1933," Working Papers 0062, Utrecht University, Centre for Global Economic History.
    4. Jeffrey G. Williamson, 2010. "Latin American Growth-Inequality Trade-Offs: The Impact of Insurgence and Independence," NBER Working Papers 15680, National Bureau of Economic Research, Inc.
    5. Broadberry, Stephen; Gupta, 2010. "Indian GDP, 1600 -1870: Some Preliminary Estimates Comparison with Britain," CAGE Online Working Paper Series 07, Competitive Advantage in the Global Economy (CAGE).
    6. Şevket Pamuk & Jeffrey G. Williamson, 2011. "Ottoman de‐industrialization, 1800–1913: assessing the magnitude, impact, and response," Economic History Review, Economic History Society, vol. 64(s1), pages 159-184, February.
    7. repec:got:cegedp:81 is not listed on IDEAS
    8. Ewout Frankema & Jeffrey Williamson & Pieter Woltjer, 2015. "An Economic Rationale for the African Scramble: The Commercial Transition and the Commodity Price Boom of 1845-1885," NBER Working Papers 21213, National Bureau of Economic Research, Inc.
    9. Jeffrey G. Williamson, 2009. "History without Evidence: Latin American Inequality since 1491," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 3, Courant Research Centre PEG.
    10. Jörg Baten & Johan Fourie, 2012. "Slave numeracy in the Cape Colony and comparative development in the eighteenth century," Working Papers 270, Economic Research Southern Africa.
    11. Jeffrey G. Williamson, 2008. "Globalization and the Great Divergence: Terms of Trade Booms and Volatility in the Poor Periphery 1782-1913," Working Papers 08-07, Association Française de Cliométrie (AFC).
    12. Francis, Joseph A., 2014. "The Periphery’s Terms of Trade in the Nineteenth Century: A Methodological Problem Revisited," MPRA Paper 57934, University Library of Munich, Germany.
    13. Bhattacharyya, Sambit, 2011. "Five Centuries of Economic Growth in India: The Institutions Perspective," MPRA Paper 67901, University Library of Munich, Germany.
    14. Tirthankar Roy, 2012. "Consumption Of Cotton Cloth In India, 1795–1940," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 52(1), pages 61-84, March.
    15. Williamson, Jeffrey G, 2013. "The Commodity Export, Growth, and Distribution Connection in Southeast Asia 1500-1940," CEPR Discussion Papers 9364, C.E.P.R. Discussion Papers.
    16. Sambit Bhattacharyya, 2011. "Growth Miracles and Growth Debacles," Books, Edward Elgar Publishing, number 13609, April.
    17. Broadberry, Stephen N & Gupta, Bishnupriya, 2010. "Indian GDP Before 1870: Some Preliminary Estimates and a Comparison with Britain," CEPR Discussion Papers 8007, C.E.P.R. Discussion Papers.
    18. Arhan Ertan & Louis Putterman & Martin Fiszbein, 2012. "Determinants and Economic Consequences of Colonization: A Global Analysis," Working Papers 2012-5, Brown University, Department of Economics.
    19. Williamson, Jeffrey G., 2009. "History without evidence: Latin American inequality since 1491," Center for European, Governance and Economic Development Research Discussion Papers 81, University of Goettingen, Department of Economics.
    20. Gupta, Bishnupriya, 2018. "Falling Behind and Catching up : India’s Transition from a Colonial Economy," The Warwick Economics Research Paper Series (TWERPS) 1147, University of Warwick, Department of Economics.
    21. Stephen Broadberry & Bishnupriya Gupta, 2009. "Lancashire, India, and shifting competitive advantage in cotton textiles, 1700-1850: the neglected role of factor prices -super-1," Economic History Review, Economic History Society, vol. 62(2), pages 279-305, May.
    22. Laura Panza & Jeffrey G. Williamson, 2015. "Did Muhammad Ali foster industrialization in early nineteenth-century Egypt?," Economic History Review, Economic History Society, vol. 68(1), pages 79-100, February.
    23. Laura Panza, 2014. "De-industrialization and re-industrialization in the Middle East: reflections on the cotton industry in Egypt and in the Izmir region," Economic History Review, Economic History Society, vol. 67(1), pages 146-169, February.
    24. Panza, Laura & Williamson, Jeffrey G, 2013. "Did Muhammad Ali Foster Industrialization in Early 19th Century Egypt?," CEPR Discussion Papers 9363, C.E.P.R. Discussion Papers.
    25. Jeffrey G. Williamson, 2009. "History without Evidence: Latin American Inequality since 1491," NBER Working Papers 14766, National Bureau of Economic Research, Inc.

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