Banking and industrialization
MetadataShow full item record
We exploit employment data from 10,528 parishes across nineteenth century England and Wales and find that a one standard deviation increase in finance employment increases the annualized growth rate of secondary labour by 0.8 percentage points. An endogenous growth model with finance and structural transformation motivates the empirical approach. Since initial banking access in 1817 may have been endogenously determined, we use instrumental variables to predict the location of country banks founded before the industrial take-off could possibly be expected. Distance and subsectoral analysis suggest that the effect of finance is highly localized and particularly strong for intermediate secondary sectors.
Heblich , S & Trew , A W 2017 ' Banking and industrialization ' School of Economics & Finance Discussion Paper , no. 1506 , University of St Andrews , St Andrews , pp. 1-69 .
Working or discussion paper
Copyright (c) the authors
Items in the St Andrews Research Repository are protected by copyright, with all rights reserved, unless otherwise indicated.