Flowers of evil? Industrialization and long run development

Raphaël Franck, Oded Galor

Research output: Contribution to journalArticlepeer-review

12 Scopus citations

Abstract

Is industrialization conducive for economic development in the long-run? Exploiting exogenous variation in the diffusion of steam engines across 19th century France, the research suggests that early industrialization has had an adverse effect on long-run prosperity, stemming from the negative impact of the adoption of unskilled-labor-intensive technologies in early stages of industrialization on contemporary levels of human capital and thus the incentive to adopt skill-intensive technologies. The research suggests that characteristics that enabled the onset of industrialization, rather than industrial technology per se, have been the source of prosperity among developed economies that experienced earlier industrialization.

Original languageEnglish
Pages (from-to)108-128
Number of pages21
JournalJournal of Monetary Economics
Volume117
DOIs
StatePublished - Jan 2021
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2019 Elsevier B.V.

Keywords

  • Cultural inertia
  • Economic growth
  • Human capital
  • Industrialization
  • Steam engine

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