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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
North, D. C. (1968) · Journal of Political Economy · doi:10.1086/259462 · Cited by 267
Tramp Shipping Cargoes, and Freights
Isserlis, L. (1938) · Journal Of The Royal Statistical Society · doi:10.2307/2980654 · Cited by 86
Research works printed but not linked: 21
- Brown, 1927, Cotton, 340
- Bruchey, 1967, Cotton and the Growth of the American Economy 1790–1860
- Ville, 1986, Total Factor Productivity in the English Shipping Industry: the North-East Coal Trade, 1750–1850, 39, 355
- Albion, 1938, Square Riggers on Schedule: The New York Sailing Packets to England, France and the Cotton Ports
- Harley, 1972, Essays on a Mature Economy: Britain after 1840, 215
- Hausman, 1987, The English Coastal Coal Trade, 1691–1910: How Rapid Was Productivity Growth?, 40, 588
- North, 1965, Les Grandes voies maritimes dans le monde, XV–XIX siècles, 209
- Hammond, 1897, The Cotton Industry
- Mitchell, 1962, Abstract of British Historical Statistics, 468
- McCloskey, 1981, The Economic History of Britain since 1700, I, 114
- Hammond, Harry , “The Handling and Uses of Cotton,” in U.S.D.A., The Cotton Plant, Office of Experiment Stations Bulletin, no. 33, 1896, pp. 360–65.
- Allen, 1979, International Competition in Iron and Steel, 1850–1913, Journal, 39, 911
- Details of these calculations are available in Harley, C. K. , “Shipbuilding and Shipping in the Late Nineteenth Century,” pp. 302–12.
- Shepherd, 1972, Shipping, maritime trade and the economic development of colonial North America
- North, 1958, Ocean Freight Rates and Economic Development 1750–1913, Journal, 18, 537
- Ville, 1987, Defending Productivity Growth in the English Coal Trade during the Eighteenth and Nineteenth Centuries, 40, 597
- North, 1966, The Economic Growth of the United States, 1790–1860, 258
- Feinstein, 1972, National Income, Expenditure and Output of the United Kingdom, 1855–1965, 132
- Harley, 1985, Change and Adaptation in Maritime History: The North Atlantic Fleets in the Nineteenth Century, 169
- Crafts, 1985, British Economic Growth during the Industrial Revolution
- 1960, Historical Statistics of the United States, 547
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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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