Testing reasons for Industrial Relocation

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Testing reasons for Industrial Relocation The
Portuguese Industrial Core (1890s-1950s)
COST 340, Paris, June 2005
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Economists and economic historians have long
discussed the reasons for industrial location.
Pollard (1981), Pounds (1988), Cameron (1993),
North (1996) Geography, information and
transportation costs.
A Commercial Yearbook for travellers with details
on population, railway stations, posts,
transportation facilities, costs, financial
services, local newspapers, amusements.
Industrial Inquiries (1890, 1957).
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Strong changes in Portuguese industrial location
between 1890-1950.
Moving from the interior to the coastal
districts. The New Economic Geography approach
and regional science Krugman (1998), Hanson
(2001), Mori and Nishikimi (2002), Rosenthal and
Strange (2003).
Location choices, agglomeration economies,
transport costs, time lags.
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Explaining the regional variation of the number
of industrial units between 1890-1957.
Significant variables Population, rail, distance
to the nearest station, financial services,
schooling, number of units. The role of lags
(Rostow, 1969).
Posts, telegraph, Courts, Military regiments,
cultural institutions (theatres, etc), were non
significant.
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The decreasing costs of transports and the
coastal attraction ports, large urban centres,
foreign markets, wider job opportunities,
migration.
Competitive advantages, agglomeration economies
and clustering.
Delocalization and Pollards thesis.
Customers, suppliers, spatial clustering Gorgo
McCann (2000).
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The role of cheaper rail and road transportation
in the first half of the 20th century for labor
mobility.
The actual regional profile of industry The less
prosperous border with Spain Guimarães,
Figueiredo (2000).
Portugal, a bi-cephalic country from an urban
point of view Justino, (1988, 1989)
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The whole coastal corridor between Lisbon and
Oporto, and not only the two cities, attracted
industrial activities, and was much more dynamic
than all the rest of the country.
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Transportation facilities were vital for industry
localization throughout the Concelhos of the
country.
In a first stage railways came as a substitute
for the horse and river transport. As time went
on, road transport became increasingly more
competitive.
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