A Measure of Productivity Change in American Colonial Shipping.

The article focuses on productivity changes that took place in American colonial shipping during 1675-1775. The purpose of this article is to determine with reasonable accuracy the productivity change which occurred in shipping engaged in colonial waters, 1675-1775. The available evidence clearly indicates that substantial improvements were taking place. Despite the variation in rates among commodity routes, the general trend is unmistakably downward. It is concluded that the uncompounded increase per annum in shipping productivity ranged between 0.6 per cent and 3.1 per cent by commodity route with a general index suggesting an overall increase of approximately 1.35 per cent per annum. Improvements taking place in shipping were fundamental to the growth of trade and the development of an integrated market economy. Since transportation costs by land were prohibitively high for most items, the bulk of goods traded went by water, both among regions in the American colonies and among the colonies and Europe, the West Indies, and elsewhere. An important aspect of increased shipping productivity was the effect it had on the extensive development of the colonies.