Lancashire, India, and Shifting Competitive Advantage in Cotton Textiles, 1700–1850: The Neglected Role of Factor Prices

27 Pages Posted: 27 Apr 2009

See all articles by Stephen N. Broadberry

Stephen N. Broadberry

London School of Economics & Political Science (LSE)

Bishnupriya Gupta

University of Warwick - Department of Economics

Abstract

In the early eighteenth century, wages in Britain were more than four times as high as in India, the world's major exporter of cotton textiles. This induced the adoption of more capital-intensive production methods in Britain and a faster rate of technological progress, so that competitive advantage had begun to shift in Britain's favour by the late eighteenth century. However, the completion of the process was delayed until after the Napoleonic Wars by increasing raw cotton costs, before supply adjusted to the major increase in demand for inputs.

Suggested Citation

Broadberry, Stephen N. and Gupta, Bishnupriya, Lancashire, India, and Shifting Competitive Advantage in Cotton Textiles, 1700–1850: The Neglected Role of Factor Prices. The Economic History Review, Vol. 62, Issue 2, pp. 279-305, May 2009, Available at SSRN: https://ssrn.com/abstract=1376456 or http://dx.doi.org/10.1111/j.1468-0289.2008.00438.x

Stephen N. Broadberry (Contact Author)

London School of Economics & Political Science (LSE) ( email )

+44 0 24 7652 3446 (Phone)
+44 0 24 7652 3032 (Fax)

Bishnupriya Gupta

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom

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