Banking and Industrialization

Heblich, Stephan; Trew, Alex

doi:10.1093/jeea/jvy037

Cited by 23 publications

(14 citation statements)

References 58 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…4 The spread of financial markets is constrained by communication technology. The English state began to develop a postal network in the sixteenth century, facilitating the conveyance of documents and valuables (Heblich and Trew, 2019). Until the nineteenth century brought the railways and the telegraph, nationwide communication of information was no faster than the speed of a horse.…”

Section: The Schumpeterian Hypothesis In Perspectivementioning

confidence: 99%

“…More evidence at the microeconomic level may offer a way forward. A geographic microeconomic analysis of data from 1817 to 1881, by Stephan Heblich and Alex Trew (2019), found evidence of causal mechanisms through which banks enabled industrial growth. Their study suggests that industrial employment was positively related to the activity of the country banks.…”

Section: The Schumpeterian Hypothesis In Perspectivementioning

confidence: 99%

“…SeeDawes and Ward-Perkins (2000, vol. 1: 6),Kindleberger (1984: 77-9),Matthias (1969: 169),Pressnell (1958),Heblich and Trew (2019).…”

mentioning

confidence: 99%

See 2 more Smart Citations

Financial institutions and the British Industrial Revolution: did financial underdevelopment hold back growth?

Hodgson

2021

Journal of Institutional Economics

View full text Add to dashboard Cite

This scoping paper addresses the role of financial institutions in empowering the British Industrial Revolution. Prominent economic historians have argued that investment was largely funded out of savings or profits, or by borrowing from family or friends: hence financial institutions played a minor role. But this claim sits uneasily with later evidence from other countries that effective financial institutions have mattered a great deal for economic development. How can this mismatch be explained? Despite numerous technological innovations, from 1760 to 1820 industrial growth was surprisingly low. Could the underdevelopment of financial institutions have held back growth? There is relatively little data to help evaluate this hypothesis. More research is required on the historical development of institutions that enabled finance to be raised. This would include the use of property as collateral. This paper sketches the evolution of British financial institutions before 1820 and makes suggestions for further empirical research. Research in this direction should enhance our understanding of the British Industrial Revolution and of the preconditions of economic development in other countries.

show abstract

Section: The Schumpeterian Hypothesis In Perspectivementioning

confidence: 99%

Section: The Schumpeterian Hypothesis In Perspectivementioning

confidence: 99%

See 1 more Smart Citation

Financial institutions and the British Industrial Revolution: did financial underdevelopment hold back growth?

Hodgson

2021

Journal of Institutional Economics

View full text Add to dashboard Cite

show abstract

“…Although we have controlled for a variety of local conditions we might still be concerned that some omitted features of the locality could be correlated with both coal intensity and height. If migration between districts depended on differences in atmospheric pollution then this sorting implies that occupational composition would also be endogenous (Hanlon 2016; Heblich, Trew, and Zylberberg 2016). As an alternative we create a measure of coal intensity by registration district in 1851, almost two generations earlier.…”

Section: Potential Biasesmentioning

confidence: 99%

Atmospheric Pollution, Health, and Height in Late Nineteenth Century Britain

2018

View full text Add to dashboard Cite

In nineteenth century Britain atmospheric pollution from coal-fired industrialization was on the order of 50 times higher than today. We examine the effects of these emissions on child development by analysing the heights on enlistment during WWI of men born in England and Wales in the 1890s. We find a strong negative relationship between adult heights and the coal intensity of the districts in which these men were observed as children in the 1901 census. The subsequent decline in atmospheric pollution likely contributed to the long-term improvement in health and increase in height.

show abstract

“…An influential literature stresses the role of finance for growth (King and Levine, 1993;Guiso et al, 2004;Lehmannn-Hasemeyer and Wahl, 2017;Heblich and Trew, 2018). However, we know little about the factors that originally gave rise to differences in financial development, and we know even less about the determinants of financial development over time.…”

Section: Introductionmentioning

confidence: 99%