Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123142
Authors: 
Heblich, Stephan
Trew, Alex
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5503
Abstract: 
We exploit employment data from 10,528 parishes across nineteenth century England and Wales and find that a one standard deviation increase in finance employment increases the annualized growth rate of secondary labour by 0.8 percentage points. An endogenous growth model with finance and structural transformation motivates the empirical approach. Since initial banking access in 1817 may have been endogenously determined, we use instrumental variables to predict the location of country banks founded before the industrial take-off could possibly be expected. Distance and subsectoral analysis suggest that the effect of finance is highly localized and particularly strong for intermediate secondary sectors.
Subjects: 
banking
industrial revolution
structural transformation
regional economic growth
urbanization
JEL: 
O11
O16
O40
N23
R11
Document Type: 
Working Paper

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