Drivers of Industrialisation: Intersectoral Evidence from the Low Countries

 

when 2017
who Robin Philips
Peter Foldvari
Bas van Leeuwen
what journal MPRA Working Papers
what paper Drivers of industrialisation: intersectoral evidence from the Low Countries in the nineteenth century.
language English

involved project member(s)

Robin Philips Peter Foldvari Bas van Leeuwen
   

abstract

In this paper, we trace the causes of regional industrial development in the nineteenth century Low Countries by disentangling the complex relationship between industrialisation, technological progress and human capital formation. We use sectoral differences in the application of technology and human capital as the central elements to explain the rise in employment in the manufacturing sector during the nineteenth century, and our findings suggest a re-interpretation of the deskilling debate. To account for differences among manufacturing sectors, we use population and industrial census data, subdivided according to their present-day manufacturing sector equivalents of the International Standard Industrial Classification (ISIC). Instrumental variable regression analysis revealed that employment in the manufacturing sector was influenced by so-called upper- tail knowledge and not by average educational levels, providing empirical proof of a so-called deskilling industrialisation process. However, we find notable differences between manufacturing sectors. The textiles and clothing sectors show few agglomeration effects and limited use of steam-powered engines, and average education levels cannot adequately explain regional industrialisation. In contrast, the location of the fast- growing and innovative machinery-manufacturing sector was more influenced by technology and the availability of human capital, particularly upper-tail knowledge captured by secondary school attendance rates.

keywords
industrialization; deskilling; human capital; steam engine; labour; economic growth

citation format

MLA
Robin Philips, Peter Foldvari, and Bas Van Leeuwen. “Drivers of industrialisation: intersectoral evidence from the Low Countries in the nineteenth century” (2017). MPRA Working Papers 83304, 1 – 25.
APA
Philips, R., Foldvari, P., and Van Leeuwen, B. (2017). Drivers of industrialisation: intersectoral evidence from the Low Countries in the nineteenth century. MPRA Working Papers 83304, 1 – 25.
Chicago
Robin Philips, Peter Foldvari, and Bas Van Leeuwen. Drivers of industrialisation: intersectoral evidence from the Low Countries in the nineteenth century. MPRA Working Papers 83304, 1 – 25.
Harvard
Philips, R., Foldvari, P. and Van Leeuwen, B., 2013. Drivers of industrialisation: intersectoral evidence from the Low Countries in the nineteenth century. MPRA Working Papers 83304, 1 – 25.
Vancouver
Philips, R., Foldvari P, Van Leeuwen B. Drivers of industrialisation: intersectoral evidence from the Low Countries in the nineteenth century. MPRA Working Papers 83304, 1 – 25.

Human Capital in Qing China: Economic Determinism or a History of Failed Opportunities?

when 2013
who Xu Yi
Peter Foldvari
Bas van Leeuwen
what journal MPRA Paper
what paper Human capital in Qing China: economic determinism or a history of failed opportunities?
language English

involved project member(s)

Bas van Leeuwen Peter Foldvari Xu Yi
     

abstract

The traditional education system in Qing China has been widely debated over the past decades. Some have argued it was efficient and furthered economic growth, while others have stressed its inefficient nature, which led to the introduction of the modern education system in the closing decades of the 19th century, followed by its total collapse in 1905. In this paper we make a first try to quantify above debate. Starting from the observation that below the well-known civil examination system there existed a whole system of popular and vocational education, we find that years of education in the population were still lower than in many European countries. More interestingly, whereas in European countries years of education increased strongly in the 19th century, our estimates of average years of education and the ABCC indices show that the level of education remained stable well into the 1920s when it accelerated. However, the main rise only occurred during the late 20th century. This finding leads to an interesting question since per capita income only started to grow significantly since the 1950s. This means that the rise of education since the mid-1920s was not as such driven by per capita income. Apparently this was the same for both the traditional and modern education since the latter had already started to transform Chinese education from the 1890s onwards. Hence, we have to look at the question why persons decided to follow education, i.e. was it individually profitable to follow education (positive private returns)? However, testing for this latter hypothesis shows that, after correction for foregone earnings, life expectancy, and probability of passing the exams, only the below shengyuan level students actually had positive returns. For an ordinary person it was therefore uneconomical to join in the civil examination system. Apparently this did not change, not even after the introduction of the modern education system, until the 1950s.

keywords

human capital; China, private returns; economic development

citation format

MLA
Xu, Yi, Peter Foldvari, and Bas Van Leeuwen. “Human capital in Qing China: economic determinism or a history of failed opportunities?.” (2013).
APA
Xu, Y., Foldvari, P., & Van Leeuwen, B. (2013). Human capital in Qing China: economic determinism or a history of failed opportunities?.
Chicago
Xu, Yi, Peter Foldvari, and Bas Van Leeuwen. “Human capital in Qing China: economic determinism or a history of failed opportunities?.” (2013).
Harvard
Xu, Y., Foldvari, P. and Van Leeuwen, B., 2013. Human capital in Qing China: economic determinism or a history of failed opportunities?.
Vancouver
Xu Y, Foldvari P, Van Leeuwen B. Human capital in Qing China: economic determinism or a history of failed opportunities?.