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From Domestic Manufacture to Industrial Revolution: Long-Run Growth and Agrucultural Development

  • Jacob L. Weisdorf

    (Institute of Economics, University of Copenhagen)

This paper investigates the historical process of industrialisation. The allocation of labour between food and non-food activities and the pattern of consumption of domestic versus industrial manufacture are determined endogenously, depending on terms of trade between agricultural and industrial goods. It is demonstrated that growth in the industrial sector’s productivity is crucial to the expansion and development of the agricultural sector and thus to the transfer of labour from agriculture to industry and to economic growth. This view contrasts with the traditional perception according to which the agricultural sector leads in the process of industrialisation.

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File URL: http://www.econ.ku.dk/english/research/publications/wp/2004/0406.pdf/
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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 04-06.

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Length: 37 pages
Date of creation: Mar 2004
Date of revision:
Handle: RePEc:kud:kuiedp:0406
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