Over the years historians have debated why Britain industrialised first. The most frequent explanation is that labour was expensive compared to capital; indeed the high level of wages has been put forth as one the "most distinctive features" in the British
economy. It is for this reason that capital intensive industrialisation ...
(Show more)Over the years historians have debated why Britain industrialised first. The most frequent explanation is that labour was expensive compared to capital; indeed the high level of wages has been put forth as one the "most distinctive features" in the British
economy. It is for this reason that capital intensive industrialisation took place. Today industrialisation is seen as a crucial stepping stone for the modernisation of developing countries. One of the most rapid industrial transformations can be seen in China, which
transformed in the mid 20th century from a poor country to become one of the most significant world players on the global market today. Labour was abundant and cheap compared to other factor inputs, and as a result labour intensive industrialisation took
place. This paper will conduct a diachronic analysis on the cotton textile industry in the
18-19th century UK and 20th century China. One major point of difference is the continuation of handicraft production in some parts of China as opposed to the UK. In looking at this difference, I show how institutions, factor endowments and consumption account
for the change or rigidity of household textile production. One such example of institutions is tradition. Here Chinese traditions and the flexibility of Chinese weavers led to them adapting machine spun yarn for handloom weaving. Moreover, factor endowments differed which ultimately led to the UK undergoing capital intensive industrialization and China undergoing labour intensive industrialization. (Austin and Sugihara, 2015) Finally a framework adapted from Jan de Vries (2008) for China can help account for differing "Z commodities" in both areas.
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