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.

Where Do Ideas Come from?: The Relation between Book Production and Patents from the Industrial Revolution to the Present

when 2014
who Aurelian P. Plopeanu
Peter Foldvari
Bas van Leeuwen
Jan Luiten Van Zanden
what journal European Journal of Science and Theology
what paper Where Do Ideas Come from? The Relation between Book Production and Patents from the Industrial Revolution to the Present
language English

involved project member(s)

Bas van Leeuwen Peter Foldvari
   

abstract

Recently, more and more use is made from book production as a measure of the long-run development of human capital. However, its relation with technology and growth is often found to be small and changing over time. In this paper we try to establish the link between book production and the spread of “ideas” as proxied by patents both over time and between regions. Two mechanisms may be distinguished. First, in the initial phase of economic development, the production of books may stimulate the accumulation of knowledge already present in society. After such an accumulation is complete, books may advance a common research focus within a certain geographic space. Indeed, applying this to the case of England, we find that books had a significant role on the number of patents during the second Industrial Revolution. However, when education became increasingly important, the role of books eventually broke down in the second half of the twentieth century. This pattern does not hold true for less developed regions where, due to the lack of efficient education, linguistic fragmentation, an overwhelmingly oral culture, and a structural different kind of knowledge, book production stagnated and no knowledge could be imported (for example, via translated books).

keywords

book production, patents, ideas, education, economic development

citation format

MLA
Plopeanu, Aurelian P., et al. “Where do Ideas come from? The relation between book production and patents from the Industrial Revolution to the present.” (2014).
APA
Plopeanu, A. P., Foldvari, P., van Leeuwen, B., & Van Zanden, J. L. (2014). Where do Ideas come from? The relation between book production and patents from the Industrial Revolution to the present.
Chicago
Plopeanu, Aurelian P., Peter Foldvari, Bas van Leeuwen, and Jan Luiten Van Zanden. “Where do Ideas come from? The relation between book production and patents from the Industrial Revolution to the present.” (2014).
Harvard
Plopeanu, A.P., Foldvari, P., van Leeuwen, B. and Van Zanden, J.L., 2014. Where do Ideas come from? The relation between book production and patents from the Industrial Revolution to the present.
Vancouver
Plopeanu AP, Foldvari P, van Leeuwen B, Van Zanden JL. Where do Ideas come from? The relation between book production and patents from the Industrial Revolution to the present.

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?.

 

Inspiration vs. Perspiration in Economic Development of the Former Soviet Union and China

when 2015
who Bas van Leeuwen

Dmitry Didenko

Péter Földvári

what journal Economics of Transition
what paper Inspiration vs. Perspiration in Economic Development of the Former Soviet Union and China (ca. 1920–2010)
language English

involved project member(s)

Bas van Leeuwen Peter Foldvari
   

We thank Stephen Broadberry, Kyoji Fukao and other participants of the Productivity session of the 2012 Asian Historical Economics Conference held at Hitotsubashi University; their contributions to the discussion helped to improve this paper. The authors are also grateful to an anonymous referee for useful advice and suggestions. The findings, interpretations and conclusions are the authors’ own views, which are not necessarily shared by the institutions with which they are affiliated. The authors accept full responsibility for the contents of the paper, including possible errors and omissions. This paper was supported by the Fundamental Research Fund for the Central Universities in China (Jinan University).

abstract

Here, we discuss the role of both perspiration factors (physical and human capital) and inspiration factors (Total Factor Productivity) in the economic development of the Former Soviet Union area (FSU) and China, ca. 1920–2010. Using a newly created dataset, we find that during the Socialist central-planning period, economic growth in both countries was largely driven by physical capital accumulation. This finding follows logically from the development policies in place at that time. During their transition periods, (i.e., starting from the late 1970s in China and the late 1980s in the FSU), China managed to keep technical inefficiency of production factors in check, largely by massively increasing its human capital, thereby lowering the physical-to-human capital ratio. In contrast, the FSU accomplished a similar outcome largely through reducing its stock of physical capital. As a result, although there was little difference in technical efficiency between these two economies, China’s emphasis on human capital formation made it easier for this country to improve its general productivity and to increase per capita growth. This changed in the late 1990s and early 2000s, when the FSU began to recover economically, regaining its 1990 levels of output and productivity.

keywords

Physical capital,human capital,productivity,technology,economic development,Socialism,USSR ,China

link to paper page of the journal website

http://onlinelibrary.wiley.com/doi/10.1111/ecot.12060/full

citation format

MLA Leeuwen, Bas, Dmitry Didenko, and Péter Földvári. “Inspiration vs. perspiration in economic development of the Former Soviet Union and China (ca. 1920–2010).” Economics of Transition 23.1 (2015): 213-246.
APA Leeuwen, B., Didenko, D., & Földvári, P. (2015). Inspiration vs. perspiration in economic development of the Former Soviet Union and China (ca. 1920–2010). Economics of Transition, 23(1), 213-246.
Chicago Leeuwen, Bas, Dmitry Didenko, and Péter Földvári. “Inspiration vs. perspiration in economic development of the Former Soviet Union and China (ca. 1920–2010).” Economics of Transition 23, no. 1 (2015): 213-246.
Harvard Leeuwen, B., Didenko, D. and Földvári, P., 2015. Inspiration vs. perspiration in economic development of the Former Soviet Union and China (ca. 1920–2010). Economics of Transition, 23(1), pp.213-246.
Vancouver Leeuwen B, Didenko D, Földvári P. Inspiration vs. perspiration in economic development of the Former Soviet Union and China (ca. 1920–2010). Economics of Transition. 2015 Jan 1;23(1):213-46.

The Changing Shape of Global Inequality 1820–2000; Exploring a New Dataset

when 2014
who Jan Luiten van Zanden

Joerg Baten

Péter Földvári

Bas van Leeuwen

what journal Review of Income and Wealth
what paper The Changing Shape of Global Inequality 1820–2000; Exploring a New Dataset
language English

involved project member(s)

Bas van Leeuwen Peter Foldvari
   

abstract

A new dataset for charting the development of global inequality between 1820 and 2000 is presented, based on a large variety of sources and methods for estimating (gross household) income inequality. On this basis we estimate the evolution of global income inequality over the past two centuries. Two sets of benchmarks about between-country inequality (the Maddison 1990 benchmark and the recent 2005 ICP round) are taken into account. We find that between 1820 and 1950, increasing per capita income is combined with increasing global inequality. After 1950, global inequality as measured by the Gini coefficient or the Theil index remains more or less constant. It also appears that the global income distribution was uni-modal in the nineteenth century, became increasingly bi-modal between 1910 and 1970 with two world wars, a depression and de-globalization, and was suddenly transformed back into a uni-modal distribution between 1980 and 2000.

keywords

economic development; inequality; output convergence; world

link to paper page of the journal website

http://onlinelibrary.wiley.com/doi/10.1111/roiw.12014/full

citation format

MLA Zanden, Jan Luiten, et al. “The changing shape of global inequality 1820–2000; exploring a new dataset.” Review of Income and Wealth 60.2 (2014): 279-297.
APA Zanden, J. L., Baten, J., Foldvari, P., & Leeuwen, B. (2014). The changing shape of global inequality 1820–2000; exploring a new dataset. Review of Income and Wealth, 60(2), 279-297.
Chicago Zanden, Jan Luiten, Joerg Baten, Peter Foldvari, and Bas Leeuwen. “The changing shape of global inequality 1820–2000; exploring a new dataset.” Review of Income and Wealth 60, no. 2 (2014): 279-297.
Harvard Zanden, J.L., Baten, J., Foldvari, P. and Leeuwen, B., 2014. The changing shape of global inequality 1820–2000; exploring a new dataset. Review of Income and Wealth, 60(2), pp.279-297.
Vancouver Zanden JL, Baten J, Foldvari P, Leeuwen B. The changing shape of global inequality 1820–2000; exploring a new dataset. Review of Income and Wealth. 2014 Jun 1;60(2):279-97.

 

Human Capital in Republican and New China: Regional and Long-Term Trends

Economic History of Developing Regions

when 2017
who Bas van Leeuwen
Peter Foldvari
Li Jieli
what journal Economic History of Developing Regions
what paper Human Capital in Republican and New China: Regional and Long-Term Trends
language English

involved project member(s)

Bas van Leeuwen Peter Foldvari Li Jieli

abstract

In recent decades it has been debated whether China’s growth performance is primarily driven by capital accumulation (more inputs) or rather by an increase in Total Factor Productivity (TFP) growth (better technology and institutions). The answer to this question may offer a glimpse into the future trends of China’s economic growth. If the perspiration factors are dominant, one should expect a slowdown in the growth of the Chinese economy in accordance with the traditional Solow model. If, however, TFP growth drives per capita GDP growth, one can expect a strong convergence of China toward the technological frontier. In this paper we combine historical, long-term analysis with quantitative methods to find out whether the effect of (both human- and physical) capital and TFP on growth changed over the last 90 years. While partly relying on existing data, lack of information required us to estimate a new dataset on human capital for the provinces of China between 1922 and 2010 which allows us to decompose the observed economic growth into accumulation driven and TFP driven parts. We find that general technological development improved steadily over the course of the 1990s and 2000s.

keywords

Chinaeconomic developmenthuman capitaltechnology


citation format

MLA van Leeuwen, Bas, Jieli van Leeuwen-Li, and Peter Foldvari. “Human capital in Republican and New China: regional and long-term trends.” Economic History of Developing Regions 32.1 (2017): 1-36.
APA
van Leeuwen, B., van Leeuwen-Li, J., & Foldvari, P. (2017). Human capital in Republican and New China: regional and long-term trends. Economic History of Developing Regions, 32(1), 1-36.
Chicago van Leeuwen, Bas, Jieli van Leeuwen-Li, and Peter Foldvari. “Human capital in Republican and New China: regional and long-term trends.” Economic History of Developing Regions 32, no. 1 (2017): 1-36.
Harvard van Leeuwen, B., van Leeuwen-Li, J. and Foldvari, P., 2017. Human capital in Republican and New China: regional and long-term trends. Economic History of Developing Regions, 32(1), pp.1-36.
Vancouver van Leeuwen B, van Leeuwen-Li J, Foldvari P. Human capital in Republican and New China: regional and long-term trends. Economic History of Developing Regions. 2017 Jan 2;32(1):1-36.

Educational and income inequality in Europe, ca. 1870-2000

when 2014
who Péter Földvári

Bas van Leeuwen

what journal Cliometrica
what paper Educational and income inequality in Europe, ca. 1870-2000
language English

involved project member(s)

Bas van Leeuwen Peter Foldvari
   

abstract

In this paper, we revisit the relationship between educational and income inequalities in a historical perspective, using a newly developed annual dataset of average years of education in Europe. Theoretically one would expect a reduction in educational inequality should, given the positive correlation between education level and income, initially increase and then, at a later stage, reduce income inequality. Testing for such a Kuznets-type relationship between educational and income inequalities yields an unexpected result: we find the expected inverse U-curve before the 1950s, but the relationship changes into a normal U-curve afterward. We explain this observation by a change in the trend of skill premium during the second half of the twentieth century due to an increased relative demand for skills, which contradicts the usual assumption of decreasing returns to education. Due to lack of appropriate wage data, we cannot directly capture this effect. Yet, once we use an instrumental variable estimation method to filter out the effect of the omitted skill premium, the expected inverse U-curve also appears for the latter decades of the twentieth century.

keywords

Average years of education, Economic development, Inequality, Kuznets-curve

link to paper page of the journal website

https://link.springer.com/article/10.1007/s11698-013-0105-3

citation format

MLA
Földvári, Péter, and Bas van Leeuwen. “Educational and income inequality in Europe, ca. 1870–2000.” Cliometrica 8.3 (2014): 271-300.
APA
Földvári, P., & van Leeuwen, B. (2014). Educational and income inequality in Europe, ca. 1870–2000. Cliometrica, 8(3), 271-300.
Chicago Földvári, Péter, and Bas van Leeuwen. “Educational and income inequality in Europe, ca. 1870–2000.” Cliometrica 8, no. 3 (2014): 271-300.
Harvard Földvári, P. and van Leeuwen, B., 2014. Educational and income inequality in Europe, ca. 1870–2000. Cliometrica, 8(3), pp.271-300.
Vancouver Földvári P, van Leeuwen B. Educational and income inequality in Europe, ca. 1870–2000. Cliometrica. 2014 Sep 1;8(3):271-300.