Technical change or market integration? · Technical change or market integration? ... Several...

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Draft version for this Conference use only. Do not quote without author’s permission. Technical change or market integration? Explaining the growth of European agriculture from the late nineteenth to the early twentieth century. Miguel Martín-Retortillo (Universitat Pompeu Fabra) ([email protected]) Vicente Pinilla (Universidad de Zaragoza) ([email protected]) _____________________________________________________________________________ Abstract: The period between 1870 and 1914 shows an increased growth of the labour productivity compared with the first decades of the nineteenth. Several technological innovations began to appear in this period, such as the beginning in the use of chemical fertilizers, biological innovations, threshing and reapers machines, new metal implements and concentrated feeds, as well as institutional changes. In this context, we want to compare the productivity of the agriculture of the different European countries. For this purpose, we have to create a homogenous agricultural production measurement in order to calculate the agricultural productivity. We conclude evaluating the importance of the technical change and the market integration in the agricultural outcome, namely, agricultural production and productivity, from 1870 to 1914. _____________________________________________________________________________

Transcript of Technical change or market integration? · Technical change or market integration? ... Several...

Page 1: Technical change or market integration? · Technical change or market integration? ... Several technological innovations began to appear in this period, such as the beginning in the

Draft version for this Conference use only. Do not quote without author’s permission.

Technical change or market integration? Explaining the growth of European agriculture from the late nineteenth to the early

twentieth century.

Miguel Martín-Retortillo

(Universitat Pompeu Fabra) ([email protected])

Vicente Pinilla (Universidad de Zaragoza)

([email protected])

_____________________________________________________________________________

Abstract: The period between 1870 and 1914 shows an increased growth of the labour productivity compared with the first decades of the nineteenth. Several technological innovations began to appear in this period, such as the beginning in the use of chemical fertilizers, biological innovations, threshing and reapers machines, new metal implements and concentrated feeds, as well as institutional changes. In this context, we want to compare the productivity of the agriculture of the different European countries. For this purpose, we have to create a homogenous agricultural production measurement in order to calculate the agricultural productivity. We conclude evaluating the importance of the technical change and the market integration in the agricultural outcome, namely, agricultural production and productivity, from 1870 to 1914.

_____________________________________________________________________________

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1. Introduction

The years between the Franco-Prussian War at the beginning of the 1870s and the eve of the Great War were crucial to European economic history. Many changes occurred in that period, and the agricultural sector was no exception. Agricultural transformations could be provoked by multiple causes, but Broadberry et al. (2010, 67-69) has suggested that the answer lies between technical progress and market integration.

Numerous studies have addressed this period of European agriculture. Economic history works such as Campbell and Overton (1991), Van Zanden (1991), O’Brien and Prados de la Escosura (1992), Federico (2005), Lains and Pinilla (2009) and Olsson and Svensson (2011) have tried to explain the main agricultural transformations throughout the European continent.

The scenario of European agriculture in the decade of the 1870s changed totally. First of all, growing international market integration, implying increasing competition, meant a fundamental change in the agricultural panorama, which affected trade policies, agricultural prices and the structure of production (Federico 1994, Jacks 2005, Federico and Persson 2007).

Furthermore, and on the one hand, several innovations and new techniques arose to improve the productive system, such as the use of chemical fertilizers, biological innovations, reaping and threshing machines, new metal instruments and concentrated feeds (Chorley 1981, Federico 2003a, Olmstead and Rhode 2008, Van Zanden 1991). The adoption of these techniques influenced the production of European agriculture and the levels of agricultural productivity.

On the other hand, “it is important to consider the possible role of the more efficient allocation of resources, as a result of the growing development of markets, including commercialization and market integration” (Broadberry et al. 2010, 67). Furthermore, in this sense, proximity to the main markets played a fundamental role in explaining the differences in production and productivity in the agricultural sector (Kopsidis and Wolf 2012). This effect was reinforced by the decrease in transport costs in this period. Structural change, industrialisation and urbanization are of key importance in explaining the upsurge of this demand (Broadberry 2009, Feinstein 1999, Grigg 1992). Not only the integration of domestic markets and growing national demand were key to boosting agricultural transformations, in some cases external demand and, thus, integration into the international market were also an essential force driving changes.

Furthermore, geography has been key to understand the differences in the situation of agriculture in this period. Firstly, the southern countries of Europe had great difficulties in adopting certain innovations common in the England a long time earlier. The north-western countries then adopted these innovations throughout the nineteenth century. Some of these innovations were new crop rotations, with the introduction of pulses and other fodder crops and the elimination of fallow periods, improved implements, more intensive fertilising and new fertilisers such as guano (Allen 1992 and 1994, Clark 1987). Pulses and other fodder crops cannot be cultivated without irrigation in a more arid climate like the Mediterranean, implying that these countries were practically removed from these transformations and their productivity levels by 1870 were far behind those of wetland Europe (Garrabou 1994, Tortella 1994, González de Molina 2001). But how important were these changes to differences in agricultural productivity? Figure 1 shows the variance and the coefficient of variation of the logarithm of agricultural labour productivity among European countries (Bairoch 1999). The increasing trend is very clear throughout the nineteenth century, showing a greater dispersion among European countries, although these differences grew more slowly from 1870 onwards.

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Meanwhile, one of the characteristics of this period is its moderate and sustained growth in per capita income (an annual growth rate of 1.08%). For the whole economy the differences among European countries decreased throughout the period, especially after 1890 (Carreras and Josephson 2010).

Figure 1. Dispersion measures of agricultural productivity among European countries

Source: Authors’ elaboration, based on Bairoch (1999).

Given this context, the objective of this paper is to analyse the different trends experienced by the agriculture of European countries from the end of the nineteenth century to the beginning of the twentieth century. In addition to analyse these trends we attempt to discover the causes of the growing divergence among their agricultural productivity levels.

To achieve these objectives we observed the differences in agricultural production among European agriculture, building a database with comparable production and productivity values. This paper is indebted to the excellent study by Federico (2004). Our data are based on those offered in his work. The second section analyses the main trends in European agricultural production. The third section is an analysis of the most important inputs in traditional agriculture, namely land and labour. The next section, the fourth, is an analysis of labour and land productivity. Finally, we present some concluding remarks.

2. European trends in agricultural production

We have already seen the interest of the study period because of the importance of the changes experienced and the increase in differences in agricultural productivity. Consequently, this section analyses the evolution of agricultural production in several European countries.

To establish a homogeneous database (Table 1), we have employed the data of Federico (2004). His paper offers a calculation of the level of agricultural production in several countries in 1913 in wheat units. To obtain an annual series for each country, we have followed the references of each country provided in the Appendix of this paper. With all these references, we have assumed that the agricultural gross production follows the same evolution as the literature’s references which appear in the sources of Table 1. Table 2 offers the rate of change of the agricultural value added, which appears in the previous table.

Table 1. Agricultural gross production in wheat units

1850/51 1870 1890 1900 1911/13

Austria na na 14,155 16,588 19,542

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

1800 1830 1840 1850 1860 1870 1880 1890 1900 1910

Var of the Ln CV

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Belgium 2,904 3,097 3,762 4,448 5,086

Denmark na 4,493 5,274 5,794 7,878

Finland na 1,141 1,642 1,890 2,066

France na 35,776 35,590 42,491 43,963

Germany 29,925 40,158 53,164 68,234 78,715

Hungary na 9,713 15,588 18,625 23,326

Italy na 17,055 19,937 22,527 26,646

Netherlands 11,859 13,949 14,236 16,187 17,608

Portugal 1,474 1,404 1,985 2,272 1,994

Spain 7,357 8,003 9,665 11,021 12,399

Sweden 2,723 3,979 4,856 5,501 6,405

UK 25,327* 26,790 26,535 24,732 25,634

*Data for 1855 Figures are triennial averages, except for the data for 1870 for Austria, Finland, Hungary, Italy and the UK, which are an average between 1870 and 1871. Source: Authors’ elaboration, based on Germany, Hoffman (1965); UK, Feinstein (1972); Denmark, Hansen (1974); Finland, Hjerrpe (1989); Belgium, Gadisseur (1973) from 1850 to 1880, Blomme (1992) from 1880 to 1913; France, Toutain (1997); Portugal, Lains and Silveira e Sousa (1998); Austria-Hungary, Schulze (2000); Netherlands, Smits et al. (2000); Spain, Prados de la Escosura (2003); Sweden, Schön and Krantz (2012); Italy, Federico (2003b) and (2004) to obtain a comparative level of agricultural gross production in 1913.

Table 2. Annual growth rates of agricultural gross production

1850-1870 1870-1890 1890-

1911/13 1850-

1911/13 1870-

1911/13

Austria na na 1.48 na na

Belgium 0.32 0.98 1.38 0.91 1.19

Denmark na 0.80 1.84 na 1.35

Finland na 1.84 1.05 na 1.42

France na -0.03 0.96 na 0.49

Germany 1.48 1.41 1.80 1.57 1.62

Hungary na 2.39 1.85 na 2.11

Italy na 0.78 1.33 na 1.07

Netherlands 0.81 0.10 0.97 0.64 0.56

Portugal -0.24 1.74 0.02 0.49 0.84

Spain 0.42 0.95 1.14 0.85 1.05

Sweden 1.91 1.00 1.27 1.39 1.14

UK na -0.05 -0.16 na -0.10 Source: As Table 1

The general trend was a moderate and sustained growth of agricultural production between 1870 and 1913. In fact, the rate of growth of gross European agricultural output was 1.34%.

Furthermore, in this period there were changes in the structure of production. The trend was to produce fewer cereals, and more market gardening and livestock products, especially dairy products. The appearance of dairy factories influenced the increase in the output of these

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products, but urbanisation and industrialisation also affected rising production, due to greater demand (Blomme 1992, Broadberry et al. 2010, Brown 1987, Turner 2004, Van Zanden 1994).

By European subregions, eastern Europe, represented by Austria-Hungary and Russia, had the highest increase (2.13%). Then, northwestern Europe increased at a rate of change of 1.02%, while southern Europe grew at 0.81% (Federico 2005, table 3.1). The relative backwardness of the southern European countries is a recurrent issue in the literature (Federico and Toniolo 1991, O’Brien and Toniolo 1991, Simpson 1995, Tortella 1994).

We can therefore observe that the countries with a greater production level had fewer problems in adopting the techniques that the England began to apply before the eighteenth century, followed by the north-western countries. These techniques were, as stated above, new crop rotations, with the introduction of pulses and other fodder crops and the elimination of fallow periods, improved implements, more intensive fertilising and new fertilisers such as guano (Allen 1992, 1994, Clark 1987).

One of the examples of the failure to adopt is Spain, in which lower growth took place, due to environmental constraints on the implementation of these innovations. In fact, Spain was one of the few countries, together with some eastern European countries, in which fallow did not disappear (Bringas Gutierrez 2000) . This limitation provoked a certain specialization in Spain towards crops particularly well adapted to an arid climate, such as vines or olives. These were oriented towards foreign markets, increasing agricultural openness (Gallego 2001).

Another example of the relative backwardness of the Southern European countries is the Italian case; this is especially marked because of the strong contrasts between the Po Valley and the Mezzogiorno. These differences could be reflected in the adoption of steam threshing, the distinct environments or different risk-aversion of landlords. The Po valley was a pioneer in the adoption of certain innovations which increased production and productivity (Federico 2003a).

In the north-western countries, there are several special cases with different trends among them. The examples of the Netherlands and the United Kingdom are significant. In the Dutch case, Table 2 displays the slow adjustment to new conditions marked by the rising integration of agricultural markets in the first globalisation (Smits 2009). However, during this period of slow growth several innovations were adopted, such as the rise of cooperatives, artificial fertilizers or the increase in market gardening (Van Zanden 1994). The output of the UK stagnated during the period. While the UK was a leader in agricultural transformation from 1750 to 1880, it then stagnated for the following 60 years. This stagnation reflects a lower production of wheat due to strong international competition, the increase in the importance of livestock products and in fruit farming, and the reduction of the number of agricultural workers (Turner 2004, Van Zanden 1991).

Other countries in this group are the cases of Germany and Denmark. Both countries obtained strong growth in their agricultural production. On the one hand, Germany increased its cereal yields more than Britain, France and Denmark. This increase could be explained by the greater use of fertilizers, from animal manure and chemicals, which meant increases of between 168% and 262%, depending on the kind of fertilisers used. Furthermore, the trade protection of Germany “was not high enough to prevent a large increase in imports, and a decline in self-sufficiency” (Grant 2009, 180), and the net imports of cereals increased from 1870 onwards. Despite this increase, the growth in domestic demand from 1870 masked the overall negative effect of international competition (Grant 2009).

On the other hand, Denmark had a lax trade policy, which benefited the dairy industry and pork products, while cereals lost importance in total production. This structural change in agricultural production allowed the sector to be a fundamental source of growth. During this period

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between 85 and 90% of exports came from the agricultural sector (Henriksen 2009, Henriksen et al. 2012).

The case of France is also remarkable. Until the late nineteenth century, vegetable output did not increase, while animal output during the 1880s and 1890s achieved annual growth rates of above 1%. An agricultural crisis may have occurred, but “it was much more a structural crisis than a crisis due to American wheat”, owing to plant diseases, the opening to competition and the structural transformation of the industry (Vivier 2009).

3. Inputs of traditional agriculture: land and labour

Agricultural production allows us to observe the transformations in the agricultural sector, but we must broaden our view to include the inputs employed by agriculture. The leading inputs in traditional agriculture were land and labour, and in this section we intend to consider the evolution of these factors.

The general view offered by Table 3 is that there was a slight growth in the overall agricultural workforce of European countries, although the differences among them were remarkable. Between 1850 and 1910, there was an annual growth rate of 0.22% in the male agricultural workforce in Europe (Federico 2005, 57).

Table 3. Agricultural workforce (males and females, millions) and their growth rates

1800 1850 1880 1910 1850/1910 1850/1880 1880/1910

Austria-Hungary n.a. 13.8 14.9 15.5 0.19 0.26 0.13

Belgium n.a. 1 1.1 0.8 -0.37 0.32 -1.06

Denmark 0.7 n.a. 0.95 0.5 n.a. n.a. -2.12

Finland n.a. 0.4 0.45 0.6 0.68 0.39 0.96

France 8.4 9.1 8.6 7.7 -0.28 -0.19 -0.37

Germany n.a. 8.3 9.6 10.5 0.39 0.49 0.30

Italy n.a. n.a. 9.4 10.5 n.a. n.a. 0.37

Netherlands 0.37 0.49 0.62 0.68 0.55 0.79 0.31

Portugal n.a. n.a. 1.1 1.1 n.a. n.a. 0.00

Spain 3.5 4.5 4.9 4.4 -0.04 0.28 -0.36

Sweden n.a. 0.7 1.1 1 0.60 1.52 -0.32

UK 1.7 2 1.6 1.5 -0.48 -0.74 -0.21 Source: Authors’ elaboration, based on Federico (2005, 57).

The rural population grew moderately in Western Europe until the last years of the nineteenth century. However, from a general point of view the process of urbanisation in Western Europe was much more important; this made the percentage of the rural population decrease significantly as a proportion of total population.

Thus, the importance of agricultural labour in the total workforce decreased throughout the period, but the north-western countries took greater advantage with respect to the peripheral southern European countries. Despite the smaller decline of the agricultural labour force in the latter countries in the interwar period it no longer comprised the majority of the total labour force, while in the UK, Holland and Belgium this had occurred before 1850 (Grigg 1992).

These differences can be explained in terms of the growth of non-agricultural sectors. In countries in which modern industry and urbanisation developed earlier, the demand for labour was stronger and was supplied mainly from rural areas. In Spain the low rural-urban migration until the second decade of the twentieth century has been explained by the slow process of industrialisation (Silvestre 2005). In the Italian case, the structural change was not unusual with

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respect to the differences between the north and south. From the beginning of the 1870s, the share of the labour force in agriculture in the north decreased slightly, while in the south it rose until the Great War (Malanima and Zamagni 2010). The aggregate effect of these two different evolutions implied a slow growth in agricultural labour.

The other input, typical in traditional agriculture, is land (arable land and tree crops), which increased from 1850 to 1913 at a timid annual rate of 0.17% (Federico 2005, 34). As with labour, land has had different trajectories among European countries, although growth was higher for this input.

Table 4 shows the data offered by Federico (2005, 33) and the annual growth rates of the evolution of acreage in arable and tree crops. The annual growth rates show that the main increases were produced in the period of 1850-1880, while between 1880 and 1910 they were lower or even negative in some cases.

Table 4. Acreage in arable and tree crops (millions of has.) and their growth rates

1800 1850 1880 1910 1850/1910 1850/1880 1880/1910

Austria 8.6 10.1 10.3 10.6 0.08 0.07 0.10

Belgium n.a. n.a. 1.6 1.5 n.a. n.a. -0.21

Denmark n.a. 2 2.4 2.9 0.62 0.61 0.63

France 33.5 34.3 32.7 29.6 -0.25 -0.16 -0.33

Germany n.a. 24.4 26.2 26.2 0.12 0.24 0.00

Hungary 5 10 15.3 16.1 0.80 1.43 0.17

Italy n.a. 13.5 15.4 14.8 0.15 0.44 -0.13

Netherlands 1.8 1.9 2 2.1 0.17 0.17 0.16

Portugal n.a. 1.9 n.a. 3.2 0.87 n.a. n.a.

Spain 12.5 16 15.8 19.1 0.30 -0.04 0.63

Sweden n.a. n.a. 3.4 3.4 n.a. n.a. 0.00

UK and Ireland n.a. 8 8 6.7 -0.30 0.00 -0.59 Source: Authors’ elaboration, based on Federico (2005, 33).

The evolution of cultivated land was influenced throughout this period by events of the previous decades. On the one hand, the reduction of fallow land was a very important phenomenon since approximately 1850 . On the other hand, there was a loss of arable land to the benefit of urban zones, particularly noticeable in the Great Britain, Belgium and the Netherlands (Grigg 1992).

Furthermore, in this period there were changes in the structure of production, as stated earlier. This affected the evolution of agricultural land and its distribution. For example, in Great Britain land devoted to cereals diminished, while land for fruit, vegetables and permanent grass increased (Brassley 2000). This phenomenon also occurred in France at the beginning of the 1890s (Goreaux 1977).

Despite this effect, in the north-western countries the aggregate effect was to reduce agricultural land slightly or to maintain it constant. This could be a reflection of increments in productivity from 1870 to 1914.

The greatest growth in acreage occurred in Spain. The conversion of rough grazing in cultivated areas, mainly cereals, was made possible by the use of chemical fertilizers and new ploughs.

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4. Productivity

The increase in land and labour productivity has been one of the main causes of increased production in the process of agricultural modernization. In this section, we will analyse their evolution and explain the differences between national trends.

Table 5. Agricultural labour productivity levels and growth rates

1850 1880 1910 1850-1880 1880-1910 1850-1910

Austria-Hungary n.a. 1,533 2,557 n.a. 1.72 n.a.

Belgium n.a. 1,914 4,030 n.a. 2.51 n.a.

Denmark n.a. 2,995 9,530 n.a. 3.93 n.a.

Finland n.a. 2,327 2,862 n.a. 0.69 n.a.

France 2,947 3,298 5,024 0.38 1.41 0.89

Germany 3,299 4,369 6,861 0.94 1.52 1.23

Italy n.a. 1,841 2,353 n.a. 0.82 n.a.

Netherlands 13,068 11,381 13,981 -0.46 0.69 0.11

Portugal n.a. 1,264 1,668 n.a. 0.93 n.a.

Spain 1,537 2,017 2,650 0.91 0.91 0.91

Sweden 3,851 4,208 6,405 0.30 1.41 0.85

UK n.a. 10,105 11,492 n.a. 0.43 n.a. Figures are triennial averages. Source: The production data are from Table 1 and the labour data are from Federico (2005, table 4.16).

Agricultural labour productivity experienced a moderate but sustained growth during the study period (Table 5). Several causes influenced this increase and the evolution of the differences among countries. On the one hand, on the supply side, technical progress was crucial, with some innovations appearing or spreading in these decades, such as the use of chemical fertilisers, biological innovations, reaping and threshing machines, new metal instruments and concentrated feeds (Chorley 1981, Van Zanden 1991, Olmstead and Rhode 2002 and 2008). However, the adoption of these techniques influenced the differences in agricultural labour productivity levels .

On the other hand, on the demand side, expanding markets and their proximity played a fundamental role in explaining differences in agricultural labour productivity (Kopsidis and Wolf 2012). The closeness of the growing urban markets play a decisive role in understanding the different levels of agricultural labour productivity. Table 5 shows that in 1880 average labour productivity level was 2,864 wheat units per worker and in 1910 was 4,121 . In both years, the countries which were below the average were Austria-Hungary, Belgium, Finland, Italy, Portugal and Spain. With the exception of Belgium, these countries had not yet completed their industrialisation processes. The slow pace of such processes did not sufficiently promote the adoption of major agricultural innovations, making their labour productivity grow more slowly than that of the advanced countries. In particular, insufficient growth in the demand for agricultural products, especially those of higher income elasticity, meant that changes were not produced at a higher speed. But the main problem was the low demand for labour from the cities and new industries, which meant agricultural wages did not rise enough to encourage the replacement of labour by machines.

The ranking of countries with regard to the average annual growth of this variable, which was 1.22%, offers more evidence about the importance of growing markets. It is striking that the countries with lower growth than the average are the Mediterranean countries, Finland, Netherlands and the UK. In 1880 these last two countries had labour productivity levels that

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were twice the European average. Their industrialisation processes, especially in the British case, were well advanced, and they had a long tradition of rural-urban migration. Thus, they had already adopted many of the opportunities for approaching the frontier of production possibilities (Grigg 1992, Van Zanden 1994, Turner 2004). The rest of the countries with low growth rates matched those whose industrialisation processes were still incomplete.

In the case of land productivity the average was 1,147 wheat units per hectare in 1880 and 1,657 in 1910 with an annual growth rate of 1.23%. The UK and the Netherlands were the most productive countries on the continent. In return, the Mediterranean countries had the least productive land.

Table 6. Agricultural land productivity level and growth rates

Y/A 1850 1880 1910 1850/1880 1880/1910 1850/1910

Austria n.a. 1,106 1,682 n.a. 1.41 n.a.

Belgium n.a. 1,316 2,115 n.a. 1.59 n.a.

Denmark 1,078 1,186 1,595 0.32 0.99 0.66

France 782 867 1,234 0.35 1.18 0.76

Germany 1,122 1,601 2,663 1.19 1.71 1.45

Hungary n.a. 749 1,289 n.a. 1.83 n.a.

Italy n.a. 1,124 1,595 n.a. 1.18 n.a.

Netherlands 3,370 3,528 4,501 0.15 0.81 0.48

Portugal 713 n.a. 655 n.a. n.a. -0.14

Spain 432 626 632 1.24 0.04 0.64

Sweden n.a. 1,362 1,878 n.a. 1.08 n.a.

UK and Ireland n.a. 2,021 2,646 n.a. 0.90 n.a.

Figures are triennial averages Source: The production data are from Table 1 and the labour data are from Federico (2005, table 4.1).

Several new techniques improved land productivity, especially innovations in new seed varieties which increased cereal yields (Olmstead and Rhode 2002 and 2008, Pujol-Andreu 2011), and the use of new chemical fertilisers together with more intensive use of manure fertilisers. The latter was benefited by the expansion of livestock, because it was easier to obtain manure, and the increase in the international trade of this kind of fertilizer, such as guano.

The proximity to markets can also explain differences in land productivity. If urban demand was close to production centres, this could encourage the adoption of certain innovations to improve yields and the ease of selling production, as potential demand grew and offered farmers some certainty of sales.

Geography had a certain importance in the agricultural sector. The aridity of Mediterranean countries impeded the adoption of British mixed farming and all the effects that this technique had upon agricultural production and productivity.

Table 7. Acreage of arable and tree crops divided by agricultural workforce

1800 1850 1880 1910

Austria-Hungary n.a. 1.46 1.72 1.72

Belgium n.a. n.a. 1.45 1.88

Denmark n.a. n.a. 2.53 5.80

France 3.99 3.77 3.80 3.84

Germany n.a. 2.94 2.73 2.50

Italy n.a. n.a. 1.64 1.41

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Netherlands 4.86 3.88 3.23 3.09

Portugal n.a. n.a. n.a. 2.91

Spain 3.57 3.56 3.22 4.34

Sweden n.a. n.a. 3.09 3.40

UK n.a. 4.00 5.00 4.47

Source: Data from Tables 3 and 4

Land-labour ratios (Table 7) grew slightly or stagnated during the study period.

5. Conclusion

The situation of European agriculture in the late nineteenth century and the beginning of the twentieth presents several interesting insights. This period is so important because economic development took place in a historical context marked by declining transport costs and increasing international market integration, known as the first wave of globalisation. Thus, the evolution of this sector forms part of the debate raised by Broadberry et al. (2010, 67) about “the underlying causes of growth: technical progress or market integration”.

The growth of production and productivity and their differences were due to the varying adoption of innovations, which amplified the production possibilities frontier, and expanding markets, which grew due to industrialisation and urbanisation. This paper tries to understand agricultural trends through these two “underlying causes”, without forgetting other relevant factors such as geography.

Several innovations appeared in this period, which permitted the production possibilities frontier to be expanded. Some of these were the use of chemicals and the increase in the use of manure fertilisers, biological innovations, reaping and threshing machines, new metal instruments and concentrated feeds (Chorley 1981, Olmstead and Rhode 2002 and 2008, Van Zanden 1991).

On the other hand, proximity to the principal markets, mainly the growing industrial centres and cities, had a vital role in explaining the outcomes of the agricultural sector. “Variation in access to urban demand affected agricultural rents mainly through changes in the crop mix towards the needs of city populations, changes in factor intensity, and price level effects” (Kopsidis and Wolf 2012, 663).

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Bairoch P (1999) L’agriculture des pays développés: 1800 à nos jours. Economica, Paris

Blomme J (1992) The economic development of Belgian agriculture 1880-1980: a quantitative and qualitative analysis. Leuven University Press, Leuven

Brassley P (2000) Output and technical change in twentieth-century British agriculture Agricultural History Review 48 (1):60-84

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