Connecting to Electricity : Technical Change and Regional Development

Kotani, Atsuki

Connecting to Electricity : Technical Change and Regional Development

Kotani, Atsuki

Institute of Social and Economic Research Discussion Papers, 2025, 1279, 1-42

アクセス数:15件（2025-05-20 14:06 集計）

固定URL: https://hdl.handle.net/11094/100858

論文情報

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タイトル	Connecting to Electricity : Technical Change and Regional Development
著者	著者名 Kotani, Atsuki
キーワード等	Technical change
	Entrant
	Structural transformation
	Historical persistence
JEL分類コード (JEL)	F63
	L26
	L94
	N65
	O14
	R12
抄録	The technical change from steam engines to electric motors dramatically transformed manufacturing activities during the Second Industrial Revolution. This paper explores how this technical change progressed and what consequences it brought for the evolution of economic geography. I hypothesize that electric motors powered by purchased electricity lowered barriers to entry in the manufacturing sector due to their significantly lower fixed costs compared to steam engines. To examine this hypothesis, I exploit the historical expansion of electricity grids in early 20th-century Japan and newly digitized establishment-level official records, including information on power sources of establishments. Descriptive evidence shows that electric motors were widely adopted by establishments of all sizes, whereas steam engines were primarily adopted by large establishments, indicating lower fixed costs of electric motors. Using hydropower potential as an instrument, I document that new entrants played a crucial role in driving this technical change and stimulating manufacturing activities.Overall, these findings lend substantial support for the hypothesis. Furthermore, I find that regions with earlier electricity access experienced substantial population growth throughout the early 20th century and exhibit larger economic activity even in the 21st century. These findings suggest a persistent impact of this technological shock: the rapid increase in entrant activities generated agglomeration forces in manufacturing, with accumulated effects still visible in the spatial distribution of economic activity today.
出版者	The Institute of Social and Economic Research, Osaka University
収録物名	Institute of Social and Economic Research Discussion Papers
巻(号)	1279
ページ	1-42
刊行年月	2025-03
言語	英語
ハンドルURL	https://hdl.handle.net/11094/100858
PISSN	0473453X
eISSN	24350982
関連情報 (references)	URI https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/DP1279.pdf
アクセス権	metadata only access
カテゴリ	ディスカッション／ワーキング・ペーパー DP/WP
カテゴリ	Institute of Social and Economic Research Discussion Papers

資源タイプ	テクニカルレポート
ローカル資源タイプ	ディスカッション／ワーキング・ペーパー
DCMI資源タイプ	text
DCTERMS.bibliographicCitation	Institute of Social and Economic Research Discussion Papers. 2025, 1279, p. 1-42
DC.title	Connecting to Electricity : Technical Change and Regional Development
DC.creator	Kotani, Atsuki
DC.publisher	The Institute of Social and Economic Research, Osaka University
DC.language' scheme='DCTERMS.RFC1766	英語
DC.type' scheme='DCTERMS.DCMIType	text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2025-03
DC.relation' scheme='DCTERMS.URI	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/DP1279.pdf
DC.subject	Technical change
	Entrant
	Structural transformation
	Historical persistence
DCTERMS.abstract	The technical change from steam engines to electric motors dramatically transformed manufacturing activities during the Second Industrial Revolution. This paper explores how this technical change progressed and what consequences it brought for the evolution of economic geography. I hypothesize that electric motors powered by purchased electricity lowered barriers to entry in the manufacturing sector due to their significantly lower fixed costs compared to steam engines. To examine this hypothesis, I exploit the historical expansion of electricity grids in early 20th-century Japan and newly digitized establishment-level official records, including information on power sources of establishments. Descriptive evidence shows that electric motors were widely adopted by establishments of all sizes, whereas steam engines were primarily adopted by large establishments, indicating lower fixed costs of electric motors. Using hydropower potential as an instrument, I document that new entrants played a crucial role in driving this technical change and stimulating manufacturing activities.Overall, these findings lend substantial support for the hypothesis. Furthermore, I find that regions with earlier electricity access experienced substantial population growth throughout the early 20th century and exhibit larger economic activity even in the 21st century. These findings suggest a persistent impact of this technological shock: the rapid increase in entrant activities generated agglomeration forces in manufacturing, with accumulated effects still visible in the spatial distribution of economic activity today.
DC.format	100858
citation_title	Connecting to Electricity : Technical Change and Regional Development
citation_author	Kotani, Atsuki
citation_publisher	The Institute of Social and Economic Research, Osaka University
citation_language	英語
citation_date	2025-03
citation_journal_title	Institute of Social and Economic Research Discussion Papers
citation_volume	1279
citation_firstpage	1
citation_lastpage	42
citation_public_url	https://hdl.handle.net/11094/100858
citation_abstract_html_url	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/DP1279.pdf

Connecting to Electricity : Technical Change and Regional Development

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