DP4356 What Explains the Location of Industry in Britain, 1871-1931
|Author(s):||Nicholas Crafts, Abay Mulatu|
|Publication Date:||April 2004|
|Keyword(s):||agglomeration economies, british manufacturing, industry location, transport costs|
|JEL(s):||N23, O18, O52|
|Programme Areas:||International Macroeconomics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=4356|
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.