Logistics, market size and giant plants in the early 20th century: a global view. by Leslie Hannah Professor of Economics, University of Tokyo; Directeur d’Etudes Associé, Ecole des Hautes Etudes en Sciences Sociales, Paris. Department of Economics University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113-0033, Japan. 620, Maison Suger 16-18 Rue Suger, 75006 Paris, France.
[email protected] This paper has been prepared to introduce a Round Table Discussion at the European Science Foundation’s “EUROCORES” Inventing Europe conference on 7-10 June 2007 in Rotterdam; for further details see the conference website at www.histech.nl/tensions 1 Logistics, Market Size and Giant Plants in the early 20th Century: a Global View. ABSTRACT Around 1900, the businesses of developed Europe – transporting freight by a more advantageous mix of ships, trains and horses – encountered logistic barriers to trade lower than the tyranny of distance imposed on the sparsely populated United States. Highly urbanized, economically integrated and compact northwest Europe was a market space larger than, and - factoring in other determinants besides its (low) tariffs - not less open to inter-country trade than the contemporary American market was to interstate trade. By the early twentieth century, the First European Integration enabled mines and factories – in small, as well as large, countries – to match the size of United States plants, where factor endowments, consumer demand or scale economies required that. “We found there, as every attentive and expert traveller will find everywhere in the civilized world, some things better and some things less good than with us.” 1906 German Official Report on US Visit (Hoff and Schwabach, North American Railroads, p.