DP4356 | What Explains the Location of Industry in Britain, 1871-1931

Publication Date

23/04/2004

JEL Code(s)

Keyword(s)

Programme Area(s)

Network(s)

Abstract

Where transport costs were falling, were the new economic geography forces for industry agglomeration and dispersion at work in the movement 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 former mainly drove the location of pre-1931 British industry, the scale economies aspect of the latter also played a role.