Can profitable arbitrage opportunities in the raw cotton market explain Britain’s continued preference for mule spinning?
In an influential article Saxonhouse and Wright argued that the quality of local cotton was the single most important factor in explaining national preferences for ring or mule spinning. For Britain, they argue that mills using more flexible mule spindles could exploit arbitrage opportunities between different types of cotton in the Liverpool market, reducing the incentives to adopt rings. We use newly assembled price data to show that such cost-reducing arbitrage opportunities were small. We argue instead that the primary determinants of Lancashire’s technological choice were demand factors, but that the availability of good raw cotton did determine technological choice in emerging cotton industries.
|Date of creation:||Nov 2002|
|Contact details of provider:|| Postal: LSE, Dept. of Economic History Houghton Street London, WC2A 2AE, U.K.|
Phone: +44 (0) 20 7955 7084
Web page: http://www.lse.ac.uk/economicHistory/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tim Leunig, 2000.
"New answers to old questions: explaining the slow adoption of ring spinning in Lancashire, 1880-1913,"
Economic History Working Papers
22378, London School of Economics and Political Science, Department of Economic History.
- Leunig, Timothy, 2001. "NEW ANSWERS TO OLD QUESTIONS: EXPLAINING THE SLOW ADOPTION OF RING SPINNING IN LANCASHIRE, 1880 l913," The Journal of Economic History, Cambridge University Press, vol. 61(02), pages 439-466, June.
- Tim Leunig, 2001. "New answers to old questions : explaining the slow adoption of ring spinning in Lancashire, 1880-1913," LSE Research Online Documents on Economics 493, London School of Economics and Political Science, LSE Library.
- William Lazonick, 1981. "Factor Costs and the Diffusion of Ring Spinning in Britain Prior to World War I," The Quarterly Journal of Economics, Oxford University Press, vol. 96(1), pages 89-109.
- Lars G. Sandberg, 1969. "American Rings and English Mules: The Role of Economic Rationality," The Quarterly Journal of Economics, Oxford University Press, vol. 83(1), pages 25-43.
- Gary Saxonhouse & Gavin Wright, 1987. "Stubborn mules and vertical integration: the disappearing constraint?," Economic History Review, Economic History Society, vol. 40(1), pages 87-94, 02.
- Cox, Alonzo B., 1928. "Marketing American Cotton in England," Technical Bulletins 156323, United States Department of Agriculture, Economic Research Service.
- Gary R. Saxonhouse & Gavin Wright, 1984. "New Evidence on the Stubborn English Mule and the Cotton Industry, 1878-1920," Economic History Review, Economic History Society, vol. 37(4), pages 507-519, November.
When requesting a correction, please mention this item's handle: RePEc:ehl:wpaper:515. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (LSERO Manager on behalf of EH Dept.)
If references are entirely missing, you can add them using this form.