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Capital and Economic Growth in Britain, 1270-1870: Preliminary Findings

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  • Stephen Broadberry
  • Alexandra M. de Pleijt

Abstract

Estimates of capital formation and the stock of capital in Britain are provided for the period 1270-1870 and used to analyse economic growth. (1) We chart the growing importance of fixed relative to working capital, the declining importance of land and the growth of net overseas assets. (2) Kaldor’s stylised facts of a rising capital-labour ratio and a stationary capital-output ratio are broadly confirmed, but only if attention is confined to fixed capital. (3) Extensive form growth accounts suggest that output growth was driven largely by factor input growth, while intensive form growth accounts suggest that TFP growth was more important than capital deepening in explaining the growth of output per head. (4) The investment share of GDP increased substantially during the transition from pre-industrial to modern economic growth.

Suggested Citation

  • Stephen Broadberry & Alexandra M. de Pleijt, 2021. "Capital and Economic Growth in Britain, 1270-1870: Preliminary Findings," Oxford Economic and Social History Working Papers _186, University of Oxford, Department of Economics.
    • Handle: RePEc:oxf:esohwp:_186
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    References listed on IDEAS

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    Cited by:

    1. Seán Kenny & Jason Lennard & Kevin Hjortshøj O’Rourke, 2020. "An annual index of Irish industrial production, 1800-1921," Oxford Economic and Social History Working Papers _185, University of Oxford, Department of Economics.
    2. Stephen Broadberry, 2021. "Accounting for the Great Divergence: Recent findings from historical national accounting," CAGE Online Working Paper Series 549, Competitive Advantage in the Global Economy (CAGE).
    3. Lambert, Thomas, 2022. "British Public Investment, Government Spending, Housing, and the Industrial Revolution: A Study of Governmental and Social Surplus Absorption," MPRA Paper 115196, University Library of Munich, Germany.
    4. Lambert, Thomas, 2021. "The Baran Ratio, Investment, and British Economic Growth and Investment," MPRA Paper 109546, University Library of Munich, Germany.
    5. Prados de la Escosura, Leandro, 2022. "The industrial revolution, an unintended consequence of self-defence?," Journal of Global History, Cambridge University Press, vol. 17(1), pages 159-164, March.
    6. Stephen Broadberry, 2022. "British economic growth and development," Oxford Economic and Social History Working Papers _203, University of Oxford, Department of Economics.

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    More about this item

    JEL classification:

    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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