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Ocean Freight Rates and Productivity, 1740–1913: The Primacy of Mechanical Invention Reaffirmed
Abstract
This article demonstrates that new industrial technology caused a revolutionary decline in nineteenth-century freight rates. This overturns Douglass North's well-known conclusion that organizational improvements were the dominant source of savings. While North's American freight rate series declines prior to the use of the metal steamship, British rates decline only modestly prior to 1850 and then rapidly as metal steamships come into use. Cotton freights dominate North's index and declined when cotton became more tightly packed for shipment. Metal ships and steam propulsion, however, caused a general decline in freight rates after 1850.
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“Because of the compound engine, the distance margin, where steam was competitive against sail, was raised to 3000-3500 miles by the end of the 1860s (Harley, 1988).”
From Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study (2002) · cites this paper as Harley, 1988
Citations
Cites
Sources of Productivity Change in Ocean Shipping, 1600-1850
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Metadata
- Authors
- Harley, C. K.
- Affiliations
- Western University (CA)
- Corresponding author
- Harley, C. Knick
- Venue
- The Journal of Economic History
- Publisher
- Cambridge University Press (CUP)
- Published
- 1988-12
- Volume
- 48
- Issue
- 4
- Pages
- 851-876
- ISSN
- 0022-0507 (ISSN-L)
- 1471-6372
- OpenAlex
- W2086767954
- Cited by
- 340
- References
- 2
- Citations by year
- 2026: 3 · 2025: 5 · 2024: 10 · 2023: 12 · 2022: 8 · 2021: 33 · 2020: 22 · 2019: 7 · 2018: 13 · 2017: 14 · 2016: 12 · 2015: 10 · 2014: 16 · 2013: 12 · 2012: 12
- FWCI
- 5.60
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Journal of Economic History (publishedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Historical Economic and Social Studies
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Keywords
- ocean freight rates, productivity, mechanical inventions, industrial technology, steamships, steam propulsion, organizational change, Douglass North, 19th century, maritime transport
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