Resource Endowments and Location Theory in Economic History: A Case Study of Quebec and Ontario at the Turn of the Twentieth Century
Morris Altman ()
The Journal of Economic History, 1986, vol. 46, issue 4, 999-1009
The hypothesis that a region's or nation's laggard industrial development can be explained by its relatively more expensive supplies of coal and iron ore is challenged here. A simple model, based on location theory, is developed. Using this model, I demonstrate the conditions under which this hypothesis holds. A case study of Quebec and Ontario industry suggests that the differential resource cost hypothesis seriously lacks explanatory power.
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