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Making Sense of the Manufacturing Belt: Determinants of U.S. Industrial Location, 1880-1920

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  • Klein, Alexander; Crafts, Nicholas

    (University of Kent; University of Warwick)

Abstract

This paper investigates the ability of the new economic geography to explain the persistence of the manufacturing belt in the United States around the turn of the 20th century using a model which subsumes both market-potential and factor-endowment arguments. The results show that market potential was central to the existence of the manufacturing belt, that it mattered more than factor endowments, and that its impact came through interactions both with scale economies and with linkage effects. Natural advantage played a role in industrial location but only through agricultural inputs which were important for a small subset of manufacturing.(First published March 2010, revised October 2010)

Suggested Citation

  • Klein, Alexander; Crafts, Nicholas, 2010. "Making Sense of the Manufacturing Belt: Determinants of U.S. Industrial Location, 1880-1920," CAGE Online Working Paper Series 04, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:04
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    File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/04.2010_klein_crafts_revised.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Theresa Gutberlet, 2014. "Mechanization and the spatial distribution of industries in the German Empire, 1875 to 1907," Economic History Review, Economic History Society, vol. 67(2), pages 463-491, May.
    2. José Aguilar-Retureta, 2015. "Regional income distribution in Mexico: new long-term evidence, 1895-2010," UB Economics Working Papers 2015/323, Universitat de Barcelona, Facultat d'Economia i Empresa, UB Economics.
    3. José Aguilar-Retureta, 2014. "The GDP per capita of the Mexican regions (1895-1930): new estimates," Documentos de Trabajo (DT-AEHE) 1415, Asociacion Espa–ola de Historia Economica.
    4. Martinez-Galarraga, Julio, 2012. "The determinants of industrial location in Spain, 1856–1929," Explorations in Economic History, Elsevier, vol. 49(2), pages 255-275.
    5. Nicholas Crafts & Alexander Klein, 2015. "Geography and intra-national home bias: U.S. domestic trade in 1949 and 2007," Journal of Economic Geography, Oxford University Press, vol. 15(3), pages 477-497.
    6. Julio Martinez-Galarraga & Daniel A. Tirado & Rafael González-Val, 2015. "Market potential and regional economic growth in Spain (1860–1930)," European Review of Economic History, Oxford University Press, vol. 19(4), pages 335-358.
    7. Klein, Alexander & Leunig, Tim, 2013. "Gibrat's Law and the British industrial revolution," Economic History Working Papers 58363, London School of Economics and Political Science, Department of Economic History.
    8. Crafts, Nicholas & O’Rourke, Kevin Hjortshøj, 2014. "Twentieth Century Growth*This research has received funding from the European Research Council under the European Union’s Seventh Framework Programme (FP7/2007-2013) / ERC grant agreement no. 249546.," Handbook of Economic Growth,in: Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 263-346 Elsevier.
    9. Nicholas Crafts & Alexander Klein, 2017. "A Long-Run Perspective on the Spatial Concentration of Manufacturing Industries in the United States," Studies in Economics 1715, School of Economics, University of Kent.
    10. Pablo Martinelli, 2014. "Editor's choice Von Thünen south of the Alps: access to markets and interwar Italian agriculture," European Review of Economic History, Oxford University Press, vol. 18(2), pages 107-143.
    11. Francisco J. Beltran Tapia & Julio Martinez-Galarrage, 2015. "Inequality and poverty in a developing economy: Evidence from regional data (Spain, 1860-1930)," Working Papers 0078, European Historical Economics Society (EHES).
    12. repec:oxf:esohwp:_124 is not listed on IDEAS
    13. Alan Fernihough & Kevin Hjorstshøj O’Rourke, 2014. "Coal and the European Industrial Revolution," Oxford University Economic and Social History Series _124, Economics Group, Nuffield College, University of Oxford.
    14. Henning, Martin & Enflo, Kerstin & Andersson, Fredrik N.G., 2011. "Trends and cycles in regional economic growth," Explorations in Economic History, Elsevier, vol. 48(4), pages 538-555.
    15. Anna Missiaia, 2016. "Where do we go from here? Market access and regional development in Italy (1871–1911)," European Review of Economic History, Oxford University Press, vol. 20(2), pages 215-241.
    16. Julio Martínez-Galarraga, 2014. "Market potential estimates in history: a survey of methods and an application to Spain, 1867-1930," Working Papers 0051, European Historical Economics Society (EHES).
    17. Grether, Jean-Marie & Hotz, Irina & Mathys, Nicole A., 2014. "Industry location in Chinese provinces: Does energy abundance matter?," Energy Economics, Elsevier, vol. 44(C), pages 383-391.
    18. repec:elg:eechap:14395_20 is not listed on IDEAS
    19. José Aguilar Retureta, 2016. "Explaining regional inequality from the periphery: The mexican case, 1900-2000," Documentos de Trabajo (DT-AEHE) 1608, Asociacion Espa–ola de Historia Economica.
    20. Tabuchi, Takatoshi & Thisse, Jacques François & Zhu, Xiwei, 2016. "Does technological progress magnify regional disparities?," IDE Discussion Papers 599, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    21. repec:oup:ereveh:v:22:y:2018:i:1:p:101-133. is not listed on IDEAS

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