Trade disruptions and early US industrialization

Between 1807 and 1815, US imports of manufactured goods were slashed dramatically by a trade embargo, non‐importation measures, and the War of 1812. These disruptions are commonly believed to have promoted the growth of nascent domestic manufacturers and thereby spurred early US industrialization. This paper uses disaggregated data on US industrial production to investigate how this interruption of foreign competition affected domestic manufacturing. On balance, the trade disruptions did not accelerate US industrialization, as trend growth in industrial output was little changed over this period. However, the disruptions may have played a role in shifting resources, at least temporarily, from trade‐dependent industries (such as shipbuilding) to domestic infant industries (such as cotton textiles).