ABSTRACT
This chapter focuses on three areas of investigation: the impact of the Napoleonic Wars, the rate of structural change in the economy and the unique properties of the First Industrial Revolution. The upswing of the Industrial Revolution Kondratieff took place under the conditions of war. The wars may have masked the full dynamic impact of the modern sector, further affecting the confidence that can be placed in the aggregate growth data. Britain leading industrial sectors did not enjoy the advantage of latecomers to industrialization who could utilize best-practice British technology, and subsequently follow the American. The wars disrupted international trade, and, as the British growth surge from the 1780s was associated with a rapid rise of exports, this may have placed a serious constraint on the modern manufacturing sector. The annual sectorial growth rate of real output in the cotton industry between 1790 and 1811 was 8 per cent compared to 6.2 per cent between 1811 and 1831.
