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The role of technology and institutions for growth: Danish creameries in the late-19th century

Author

Listed:
  • Paul Sharp

    (University of Copenhagen)

  • Ingrid Henriksen

    (University of Copenhagen)

  • Markus Lampe

    (Universidad Carlos III Madrid)

Abstract

"We consider the relative contributions of changing technology and institutions for economic growth through the investigation of a natural experiment in history: the almost simultaneous introduction of the automatic cream separator and the cooperative ownership form in the Danish dairy industry from around 1880. Using a new database of statistics from creameries and the tool of stochastic frontier analysis, we find that both institutions and technology were important for the success of the Danish dairy industry and, by implication, the growth and early development of the Danish economy."

Suggested Citation

  • Paul Sharp & Ingrid Henriksen & Markus Lampe, 2011. "The role of technology and institutions for growth: Danish creameries in the late-19th century," Working Papers 11028, Economic History Society.
    • Handle: RePEc:ehs:wpaper:11028
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    File URL: https://www.economics.ku.dk/research/publications/wp/dp_2010/1032.pdf/
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    References listed on IDEAS

    as
    1. Henriksen, Ingrid & Hviid, Morten, 2005. "Diffusion of new technology and complementary best practice: A case study," European Review of Economic History, Cambridge University Press, vol. 9(3), pages 365-397, December.
    2. Bailey, DeeVon & Biswas, Basudeb & Kumbhakar, Subal C. & Schulthies, B. Kris, 1989. "An Analysis Of Technical, Allocative, And Scale Inefficiency: The Case Of Ecuadorian Dairy Farms," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-8, July.
    3. Henriksen, Ingrid, 1999. "Avoiding lock-in: Cooperative creameries in Denmark, 1882–1903," European Review of Economic History, Cambridge University Press, vol. 3(1), pages 57-78, April.
    4. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    5. KevinH. O'Rourke, 2007. "Culture, Conflict and Cooperation: Irish Dairying Before the Great War," Economic Journal, Royal Economic Society, vol. 117(523), pages 1357-1379, October.
    6. Williamson, Oliver E., 1980. "The organization of work a comparative institutional assessment," Journal of Economic Behavior & Organization, Elsevier, vol. 1(1), pages 5-38, March.
    7. Hallam, David & Machado, Fernando, 1996. "Efficiency Analysis with Panel Data: A Study of Portuguese Dairy Farms," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 23(1), pages 79-93.
    8. Fan, Yanqin & Li, Qi & Weersink, Alfons, 1996. "Semiparametric Estimation of Stochastic Production Frontier Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 14(4), pages 460-468, October.
    9. Kumbhakar, Subal C & Biswas, Basudeb & Bailey, DeeVon, 1989. "A Study of Economic Efficiency of Utah Dairy Farmers: A System Approach," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 595-604, November.
    10. Ingrid Henriksen & Kevin H. O'Rourke, 2005. "Incentives, technology and the shift to year‐round dairying in late nineteenth‐century Denmark," Economic History Review, Economic History Society, vol. 58(3), pages 520-554, August.
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    Citations

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    Cited by:

    1. Peter Sandholt Jensen & Markus Lampe & Paul Sharp & Christian Volmar Skovsgaard, 2018. "‘Getting to Denmark’: the Role of Elites for Development," Working Papers 0125, European Historical Economics Society (EHES).
    2. Sofia Henriques & Eoin McLaughlin & Paul Sharp & Xanthi Tsoukli & Christian Veddel, 2020. "Opening the Black Box of the Danish Dairy Cooperatives: A Productivity Analysis," Working Papers 0203, European Historical Economics Society (EHES).
    3. Sofia Teives Henriques & Paul Sharp & Xanthi Tsoukli & Christian Vedel, 2021. "Resilience, Adaptability and Transformability: Danish Butter Factories in the Face of Coal Shortages," Working Papers 0220, European Historical Economics Society (EHES).
    4. Vincent Bignon & Cecilia Garcia-Peñalosa, 2018. "The Toll of Tariffs: Protectionism, Education and Fertility in Late 19th Century France," Working papers 690, Banque de France.
    5. Samuel Garrido, 2018. "Why the first cooperative wineries produced poor quality wine, why they were so scarce and why they were set up: evidence from Spain," Documentos de Trabajo (DT-AEHE) 1807, Asociación Española de Historia Económica.
    6. Eoin McLaughlin & Paul Sharp & Xanthi Tsoukli & Christian Vedel, 2021. "Ireland in a Danish mirror: A microlevel comparison of the productivity of Danish and Irish creameries before the First World War," Working Papers 0219, European Historical Economics Society (EHES).

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    More about this item

    Keywords

    Creameries; dairies; Denmark; development; economic growth; institutions; technology; stochastic frontier analysis;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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