Making Sense of the Manufacturing Belt: Determinants of U.S. Industrial Location, 1880-1920
نویسندگان
چکیده
This paper investigates the ability of the new economic geography to explain the existence of the manufacturing belt in the United States around the turn of the 20 century using a model which subsumes both market-potential and factor-endowment arguments. The results show that market potential was central to the existence of the manufacturing belt, that it mattered more than factor endowments, and that its impact came through interactions both with scale economies and with linkage effects. Natural advantage played a role in industrial location but only through agricultural inputs which were important for a small subset of manufacturing.
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