Capital Intensity and US County Population Growth During the Late 19th Century

Burton Abrams, Jing Li and James G Mulligan
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Jing Li: Department of Economics, University of Delaware, Newark, DE 19716, USA
James G Mulligan: Department of Economics, University of Delaware, Newark, DE 19716, USA

Eastern Economic Journal, 2013, vol. 39, issue 1, 18-27

Abstract: The United States witnessed substantial growth in manufacturing and urban populations during the last half of the 19th century. To date, no convincing evidence has been presented to explain the shift in population to urban areas. We find evidence that capital intensity, particularly new capital in the form of steam horsepower, played a significant role in drawing labor into counties and by inference into urban areas. This provides support for the hypothesis that the locational decisions of manufacturers and their placement of capital in urban areas fueled urban growth in the 19th century.

Date: 2013
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