Banking and industrialization

Stephan Heblich, Alex William Trew

    Research output: Working paperDiscussion paper

    1 Downloads (Pure)


    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.
    Original languageEnglish
    Place of PublicationSt Andrews
    PublisherUniversity of St Andrews
    Number of pages69
    Publication statusPublished - 1 Dec 2017

    Publication series

    NameSchool of Economics & Finance Discussion Paper
    PublisherUniversity of St Andrews
    ISSN (Print)0962-4031
    ISSN (Electronic)2055-303X


    • Banking
    • industrial revolution
    • structural transformation
    • regional economic growth
    • urbanization


    Dive into the research topics of 'Banking and industrialization'. Together they form a unique fingerprint.

    Cite this