Working Paper: NBER ID: w11206
Authors: Sukkoo Kim
Abstract: Industrialization and urbanization are seen as interdependent processes of modern economic development. However, the exact nature of their causal relationship is still open to considerable debate. This paper uses firm-level data from the manuscripts of the decennial censuses between 1850 and 1880 to examine whether the adoption of the steam engine as the primary power source by manufacturers during industrialization contributed to urbanization. While the data indicate that steam-powered firms were more likely to locate in urban areas than water-powered firms, the adoption of the steam engine did not contribute substantially to urbanization.
Keywords: No keywords provided
JEL Codes: N600; N900; R380
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| shift from artisanal to factory production (L23) | urbanization rate (R11) |
| steam power (L94) | urbanization rates (R11) |
| urban location choices for firms (R32) | urbanization (R11) |
| steam engines (L94) | urban location of manufacturing firms (R32) |
| steampowered employees (Y70) | urban location (R39) |
| waterpowered employees (L94) | urban location (R39) |