Working Paper: CEPR ID: DP3235
Authors: Kevin H. O'Rourke
Abstract: This Paper explores the diffusion of two agricultural innovations in late 19th century Denmark and Ireland: the milk separator and the cooperative creamery. It asks whether variables identified as important for innovation and growth by cross-country regressions mattered in this instance: in particular, education, uncertain property rights, and social capital. The Paper finds that literacy and conflict regarding property rights impeded the diffusion of milk separators in Ireland, and that the propensity to cooperate there was lower among Catholics than among Protestants. These factors all help explain the superior performance of the Danish dairy industry during this period.
Keywords: Agriculture; History; Innovation
JEL Codes: O31; N53
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| literacy levels (I21) | diffusion of milk separators (L66) |
| political instability (O17) | diffusion of milk separators (L66) |
| Catholicism (Z12) | propensity to cooperate (C71) |
| propensity to cooperate (C71) | establishment of cooperative creameries (P13) |
| economic factors (cow density) (Q10) | diffusion of milk separators (L66) |
| literacy levels (I21) | cooperative creameries (P13) |
| political instability (O17) | cooperative creameries (P13) |