The Location of the UK Cotton Textiles Industry in 1838: A Quantitative Analysis

49 Pages Posted: 3 Sep 2013

See all articles by Nicholas Crafts

Nicholas Crafts

University of Warwick

Nikolaus Wolf

Humboldt University Berlin - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute); London School of Economics - Centre for Economic Performance (CEP)

Date Written: September 2013

Abstract

We examine the geography of UK cotton textiles in 1838 to test claims about why the industry came to be so heavily concentrated in Lancashire. Our analysis considers both first and second nature geography including the availability of water power, humidity, coal prices, market access and sunk costs. We show that some of these characteristics have substantial explanatory power. Moreover, we exploit the change from water to steam power to show that the persistent effect of first nature characteristics on industry location can be explained by a combination of sunk costs and agglomeration effects.

Keywords: agglomeration, cotton textiles, geography, industry location

JEL Classification: N63, N93, R12

Suggested Citation

Crafts, Nicholas and Wolf, Nikolaus, The Location of the UK Cotton Textiles Industry in 1838: A Quantitative Analysis (September 2013). CEPR Discussion Paper No. DP9626. Available at SSRN: https://ssrn.com/abstract=2319974

Nicholas Crafts (Contact Author)

University of Warwick ( email )

Gibbet Hill Rd.
Coventry, West Midlands CV4 8UW
United Kingdom

Nikolaus Wolf

Humboldt University Berlin - Department of Economics ( email )

Spandauer Strasse 1
Berlin
Germany

HOME PAGE: http://www.wiwi.hu-berlin.de/professuren/vwl/wg/

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

London School of Economics - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom
+4420-7852-3512 (Phone)

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