What explains the location of industry in Britain, 1871–1931?

Nicholas Crafts and Abay Mulatu

Journal of Economic Geography, 2005, vol. 5, issue 4, 499-518

Abstract: Where transport costs were falling, were the new economic geography forces for industry agglomeration and dispersion at work in the location 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 location of pre-1931 British industry was mainly driven by the former, the scale economies aspect of the latter also played a role. Copyright 2005, Oxford University Press.

Date: 2005
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