Flowers of evil? Industrialization and long run development

Abstract

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The European coal curse

“…Moreover, given the well-established centrality of human capital for economic growth, our results are salient for studies exploring the deep geographical determinants of human capital formation (Galor et al 2009;Galor and Özak 2016). 7 In particular, we contribute to the recent line of research exploring the long-run (de) skilling effect of early industrialization initiated by Franck and Galor (2019). Our findings 5 Couttenier et al (2017) provide evidence of a "homicide curse" in US counties that discovered minerals before formal institutions were established.…”

“…The paper ofFernihough and O'Rourke (2014), indeed, finds evidence that cities that were proximate to coal grew faster in terms of population during the 19th century.42 The decline of European industrial regions has been sizable, as documented empirically byFranck and Galor (2019). In line with anecdotal accounts describing the demise of formerly prosperous industrial centers like the Ruhr valley in Germany or the English Midlands,Franck and Galor (2019) exploit variation in the introduction of the steam engine across French provinces and find that regions that adopted industrial technology earlier have lower standards of living when compared to otherwise similar regions in the present.43 Note, however, that these results should be viewed with some caution, as these variables are measured with error and we do not have an exogenous source of variation to obtain our estimated effects of historical industrialization.…”

“…A negative effect of early industrialization on income and human capital has been similarly documented byFranck and Galor (2019). See below for a discussion of the relevant literature.4 FollowingSachs and Warner (2001), a wide range of empirical studies have investigated the causes and consequences of this "resource curse."…”

The Role of Electricity and Energy Consumption Influences Industrial Development Between Regions in Indonesia

“…Research by Franck and Galor (2019) with research questions Is industrialisation conducive to economic development in the 21 st century? Research shows that early industrialisation has an adverse effect on long-term prosperity, stemming from the negative impact of the adoption of labour-intensive, skillless technology in the early stages of industrialisation at the current human resource level and thus the incentive to adopt skills-intensive technology.…”

Impact of industrialization on China’s regional energy security in the New Era

“…Therefore, industrialization will have a significant impact on energy security through supply and demand. More than 70 years of industrialization in China has promoted rapid economic growth (Franck and Galor, 2019), but the problems including the shortage and exhaustion of natural resources, environmental pollution and ecological crisis, and the supply imbalance in industrial structure make the traditional industrial development unsustainable (Li et al, 2019;Xu et al, 2020).With China's economy entering into the new era, depeening industrialization is coming.…”