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Title: What Explains the Location of Industry in Britain, 1871-1931

Author(s): Nicholas Crafts and Abay Mulatu

Publication Date: April 2004

Keyword(s): agglomeration economies, british manufacturing, industry location and transport costs

Programme Area(s): International Macroeconomics

Abstract: Where transport costs were falling, were the new economic geography forces for industry agglomeration and dispersion at work in the movement of industry in pre-1931 Britain? This Paper examines the issue empirically using a general model that nests the Heckscher-Ohlin factor endowment with new economic geography models. The evidence suggests that while the former mainly drove the location of pre-1931 British industry, the scale economies aspect of the latter also played a role.

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Bibliographic Reference

Crafts, N and Mulatu, A. 2004. 'What Explains the Location of Industry in Britain, 1871-1931'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=4356