Working Paper: NBER ID: w27716
Authors: Taylor Jaworski; Ian Keay
Abstract: We use new data on manufacturing in Canada to quantify the impact of globalization on the growth and composition of industrialization in the second half of the nineteenth century. We find that industries and regions more exposed to international trade experienced faster growth. Consistent with the literature on economic development in Canada, we find that scale economies, government policy decisions, and domestic market expansion also played an important role in manufacturing growth. However, after controlling for these factors, we find that greater exposure to globalization shaped the pattern of regional industrialization in a way not appreciated in Canadian historiography.
Keywords: globalization; industrialization; Canada; trade exposure
JEL Codes: F63; N11; N71; O14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| greater exposure to international trade (F69) | faster industrial growth (O25) |
| proximity to ports + higher export intensity (F14) | significant output growth (O49) |
| distance to ports + export orientation (F10) | industrial output growth (L16) |
| trade exposure + initial productivity levels + confounding factors (O49) | positive relationship with industrial output growth (E23) |
| global market integration (F02) | regional industrial dynamics (R11) |