What Explains the Location of Industry in Britain, 1871&Ndash;1931?
Posted: 29 Feb 2008
Date Written: August 2005
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.
Keywords: JEL classifications: N23, O18, O52
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