Resource Endowments and Location Theory in Economic History: A Case Study of Quebec and Ontario at the Turn of the Twentieth Century

Abstract:     
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.

Keywords: Resource Endowments, Quebec, Ontario, Economic History, Coal, Iron Ore, Resource Cost hypothesis

JEL Classification: N51, Q01

Accepted Paper Series