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

Stephen Broadberry and Alexandra de Pleijt ()

No 15889, CEPR Discussion Papers from Centre for Economic Policy Research

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.

Keywords: Capital; Economic growth; Britain; Long run (search for similar items in EconPapers)
JEL-codes: N13 N33 O10 O47 (search for similar items in EconPapers)
Date: 2021-03
New Economics Papers: this item is included in nep-gro and nep-his
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Citations: View citations in EconPapers (10)

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Working Paper: Capital and Economic Growth in Britain, 1270-1870: Preliminary findings (2021)
Working Paper: Capital and Economic Growth in Britain, 1270-1870: Preliminary Findings (2021)
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