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Simulating the Two Views of the British Industrial Revolution

Published online by Cambridge University Press:  26 July 2012

C. Knick Harley  and
N.F.R. Crafts
C. Knick Harley
Affiliation:
Department of Economics, University of Western Ontario, London, Canada N6A 5C2. E-mail: charley@julian.uwo.ca. N. F. R.
N.F.R. Crafts
Affiliation:
Department of Economic HistoryLondon School of Economics, Houghton St., London, United Kingdom WX2A 2AE. E-mail: n.crafts@lse.ac.uk.
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Abstract

This study examines technical change, trade, economic structure, and growth during the British Industrial Revolution by means of computational general equilibrium (CGE) modeling. It rejects Peter Temin's contention that our “new view” of sectorally concentrated productivity growth is inconsistent with industrial export data. A CGE trade model with diminishing returns in agriculture and realistic assumptions about consumer demand shows that while technical change in cottons and iron were major spurs to exportation of those specific goods, the need for food imports also stimulated exports generally. Incorporating trade data thus enriches our “new view.”

Type
Articles
Information
The Journal of Economic History , Volume 60 , Issue 3 , September 2000 , pp. 819 - 841
Copyright
Copyright © The Economic History Association 2000

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