Logistics, market size and giant industrial units in the early 20th century: a global view

Leslie Hannah ()
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Leslie Hannah: University of Tokyo

No 8014, Working Papers from Economic History Society

Abstract: "Around 1900, the businesses of developed Europe – transporting freight by a different mix of ships, trains and horses – encountered logistic barriers to trade lower than the tyranny of distance imposed on the sparsely populated United States. Highly urbanized, economically integrated and compact northwest Europe was a market space larger than, and - factoring in other determinants besides its (low) tariffs - not less open to inter-country trade than the contemporary American market was to interstate trade. Accordingly, European mines, factories and firms – in small, as well as large, countries – could generally match the scale of those in the United States in the early twentieth century, where factor endowments, demand conditions or scale economies required that."

JEL-codes: N00 (search for similar items in EconPapers)
Date: 2008-03
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