Power point II. The Industrial Revolution II. The Spread of the Industrial Revolution across the Globe: Convergence dynamics and the Standard Model



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POWER POINT 7
1 POWER POINT INTRO
displaced spinning wheels in Britain.
• The spinning jenny was an example of localized learning i.e. practice that involves studying
existing practice in an effort to modify it in order to reduce costs (David 1975).
• Hargreaves’ experience is consistent with the democratic rather than elitarian view of invention i.e., inventors were drawn from across the social spectrum, with many coming from humble backgrounds (Khan 2005).


The patent for Hargreaves’ Spinning Jenny
However, in France and India (the other leading cotton producers) the story was much different......
FRANCE
The French government actively promoted the adoption of the spinning jenny especially through the activity of John Holker General Inspector of Foreign Manufactures since 1754.
Despite his efforts the machine was never adopted by domestic producers. Only about 900 jennies were used in France in 1790.
ASIA
There is no record that the jenny was ever considered in India. In China instead it was known since the 13century but never generally adopted and fell out of use.
Does this evidence reflect Ignorance
or
Rational Response to the economic environment?







Crafts (2010)’s remarks


  1. Low wages were not the reason the French did not use the jenny. In France the jenny would be profitable at the English jenny price (r = 24%).

  2. Jenny was very profitable also in America. Why wasn’t the jenny implemented there?

  3. In England jenny would have been profitable at wages of 3.75d, i.e. the wage of c.1650,

over a century before Hargreaves’s invention. Why not earlier adoption?

  1. The rate of return is sensitive to the utilization assumptions. With 300 days and utilization rate at 50 instead of 40% , r in France becomes 18 per cent.


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