AbstractThis paper, a contribution to the "proto-industrialization" debate, examines the relative advantages of urban and rural locations for cloth manufacturing in later-medieval England and the Low Countries. From the eleventh to the mid-fourteenth century, when the English cloth trade began its seemingly inexorable expansion, the Low Countries had enjoyed a virtual supremacy in international cloth markets, then chiefly located in the Mediterranean basin. The traditional view has attributed the ultimate English victory to the advantages of a rural location, using cheap labour and water-powered fulling. The proponents of this view further contend that in late thirteenth-century England a new rural industry had displaced a centuries-old "traditional" urban cloth industry through such superior cost advantages. To challenge that view, this paper puts forth the following propositions : (I) that England's traditional urban industry had declined, abruptly from the 1290s, chiefly because of steeply rising, war-induced, transaction costs in Mediterranean markets for its chief products: i.e., cheap and light fabrics, which they had sold as price takers; (2) that the Flemish/Brabantine cloth industries, having had a similar industrial-commercial orientation, suffered from the same industrial crisis; and more quickly responded by reorienting production, as price makers, to the very high-priced luxury woollens; (3) that rural locations were not always more advantageous, in lower labour and other costs; (4) that urban locations offered important benefits for luxury-cloth production : a more highly skilled, productive, better regulated labour force; urban and guild institutions to enforce necessary quality controls and promote international reputations for high quality; (5) that England's cloth industry, when it revived from the 1360s, followed suit in shifting to more luxury-oriented exports, while gaining its chief advantages from the fiscal burdens imposed on high-quality wool exports to its overseas competitors ; (6) that English export-oriented cloth production also remained more urban than rural until the late fifteenth century (for many complex reasons explored in this paper).
The Scale, Factors and Mobility and Stability Motives in The Labour Market
