Industrial Transformation and Market Integration Along the American Manufacturing Frontier: The Midwest from 1850 to 1880

The industrial transformation of the American Midwest during the mid-nineteenth century played a considerable role at a critical period in the emergence of an integrated, national economy. The Midwest's significance lies not only in its obvious central location but also in the apparently paradoxical industrial development of a region that initially had such a noticeable comparative advantage in agriculture. As the Industrial Revolution transformed the American economy from its rural, agrarian roots, the Midwest was the region that characterized the diversity and complexity of a modern, national economy. This dissertation examines the regional industrialization of the American Midwest during the mid-nineteenth century and within the context of an emerging national economy. It argues that the pace and pattern of midwestern industrial development from 1850 to 1880 was determined not merely by relative factor endowments but also by the extent and integration of its markets. It provides empirical support for the idea that the industrial development of the region was driven largely by internal forces; that is, the reorganization and reallocation of its resources increased productivity and thereby stimulated further development. Industrialization is neither a simple nor a singular process, but it seems reasonable to argue that the second half of the nineteenth century witnessed the transition from artisan production and local markets to mass production and more integrated markets in the United States. In 1850, the Midwest was characterized by small-scale, artisan manufacturers who exploited abundant natural resources and sold their products in local markets. By 1880, however, it had not only broadened its industrial base and diversified its techniques of production but had begun to export its manufactured products inter-regionally. Thus, the Midwest had undergone a dramatic industrial transition at a pivotal juncture in the economic development of the nation.