The Location of the British Cotton Textiles Industry in 1838: a Quantitative Analysis

The paper examines the spatial distribution of cotton textiles in Britain in 1838 using a conditional logit model informed by ideas from new economic geography to test claims made by historians about why the industry came to be so heavily concentrated in Lancashire. The analysis considers both first and second nature aspects of geography including climate, the availability of water power, the value of land, the price of coal and the legacy effects of an early textile tradition. We conclude that the most important factors are based on original advantages which continue to have an influence even in 1838 through their impact in the establishment of successful agglomerations. The picture which emerges is reminiscent of Krugman's 59‐Cadillac model. We are grateful for help with data and useful discussions to 2011 and we have benefited from comments that we received on that occasion. The usual disclaimer applies.

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