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What Explains the Location of Industry in Britain, 1871-1931

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  • Crafts, Nicholas
  • Mulatu, Abay

Abstract

Where transport costs were falling, were the new economic geography forces for industry agglomeration and dispersion at work in the movement of industry in pre-1931 Britain? This Paper examines the issue empirically using a general model that nests the Heckscher-Ohlin factor endowment with new economic geography models. The evidence suggests that while the former mainly drove the location of pre-1931 British industry, the scale economies aspect of the latter also played a role.

Suggested Citation

  • Crafts, Nicholas & Mulatu, Abay, 2004. "What Explains the Location of Industry in Britain, 1871-1931," CEPR Discussion Papers 4356, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:4356
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    Keywords

    agglomeration economies; british manufacturing; industry location; transport costs;

    JEL classification:

    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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    1. Historical Economic Geography

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