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Journal of Economic Geography Advance Access originally published online on May 16, 2005
Journal of Economic Geography 2005 5(4):499-518; doi:10.1093/jeg/lbh069
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© The Author (2005). Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oupjournals.org

What explains the location of industry in Britain, 1871–1931?

Nicholas Crafts* and Abay Mulatu**

* Department of Economic History, London School of Economics, Houghton Street, London, WC2A 2AE, UK. email <N.Crafts{at}lse.ac.uk>
** Department of Economic History, London School of Economics, Houghton Street, London, WC2A 2AE, UK. email <a.mulatu{at}lse.ac.uk>

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: industry location, British manufacturing, transport costs, agglomeration economies,
JEL classifications: N23, O18, O52
Date submitted: 4 March 2004     Date accepted: 27 January 2005


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