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How did the location of industry respond to falling transport costs in Britain before World War 1?

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  • Crafts, Nicholas
  • Mulatu, Abay

Abstract

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.

Suggested Citation

  • Crafts, Nicholas & Mulatu, Abay, 2004. "How did the location of industry respond to falling transport costs in Britain before World War 1?," Economic History Working Papers 22555, London School of Economics and Political Science, Department of Economic History.
  • Handle: RePEc:ehl:wpaper:22555
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    File URL: http://eprints.lse.ac.uk/22555/
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    References listed on IDEAS

    as
    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, April.
    2. Venables, Anthony J, 1996. "Equilibrium Locations of Vertically Linked Industries," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(2), pages 341-359, May.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. John Tang, 2013. "Railroad expansion and entrepreneurship: Evidence from Meiji Japan," AJRC Working Papers 1302, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    2. Dan Liu & Christopher M. Meissner, 2013. "Market Potential and the Rise of US Productivity Leadership," NBER Working Papers 18819, National Bureau of Economic Research, Inc.
    3. 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.
    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. 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.
    6. Yochanan Shachmurove, 2007. "Geography and Industry Meets Venture Capital," PIER Working Paper Archive 07-015, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    7. 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.
    8. Theo Balderston, 2010. "The economics of abundance: coal and cotton in Lancashire and the world," Economic History Review, Economic History Society, vol. 63(3), pages 569-590, August.
    9. Yochanan Shachmurove, 2006. "An Excursion into the Venture Capital Industry Stratified by Locations and Industries 1996-2005," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 11(3), pages 79-104, Fall.
    10. Rosés, Joan Ramón & Martínez-Galarraga, Julio & Tirado, Daniel A., 2010. "The upswing of regional income inequality in Spain (1860-1930)," Explorations in Economic History, Elsevier, vol. 47(2), pages 244-257, April.
    11. repec:eee:juecon:v:99:y:2017:i:c:p:1-14 is not listed on IDEAS
    12. Stuetzer, Michael & Obschonka, Martin & Audretsch, David B. & Wyrwich, Michael & Rentfrow, Peter J. & Coombes, Mike & Shaw-Taylor, Leigh & Satchell, Max, 2016. "Industry structure, entrepreneurship, and culture: An empirical analysis using historical coalfields," European Economic Review, Elsevier, vol. 86(C), pages 52-72.
    13. Jordi Domenech, 2008. "Mineral resource abundance and regional growth in Spain, 1860-2000," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(8), pages 1122-1135.
    14. Tim Leunig, 2011. "Cart or Horse: Transport and Economic Growth," International Transport Forum Discussion Papers 2011/4, OECD Publishing.
    15. 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.
    16. 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.
    17. Schulze, Max-Stephan, 2007. "Regional income dispersion and market potential in the late nineteenth century Hapsburg Empire," Economic History Working Papers 22311, London School of Economics and Political Science, Department of Economic History.
    18. 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).
    19. Alexander Klein & Nicholas Crafts, 2012. "Making sense of the manufacturing belt: determinants of U.S. industrial location, 1880--1920," Journal of Economic Geography, Oxford University Press, vol. 12(4), pages 775-807, July.
    20. Walker Hanlon & Antonio Miscio, 2014. "Agglomeration: A Dynamic Approach," NBER Working Papers 20728, National Bureau of Economic Research, Inc.
    21. repec:csg:ajrcwp:02 is not listed on IDEAS

    More about this item

    JEL classification:

    • N0 - Economic History - - General
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • B1 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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