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Journal of Economic Geography Advance Access published online on May 16, 2005

Journal of Economic Geography, 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
Revised March 4, 2004
Accepted January 27, 2005

Article

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

Nicholas Crafts 1* and Abay Mulatu 1

1 Department of Economic History, London School of Economics, Houghton Street, London, WC2A 2AE, UK

* To whom correspondence should be addressed.
Nicholas Crafts, E-mail: N.Crafts{at}lse.ac.uk


   Abstract

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.
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