The Peterson Institute for International Economics (PIIE) is an independent nonprofit, nonpartisan research organization dedicated to strengthening prosperity and human welfare in the global economy through expert analysis and practical policy solutions.
PIIE’s renowned scholars explore and analyze a broad range of economic topics and issues, including globalization, economic and growth prospects, finance, political economy, and trade and investment, as well as economic challenges facing individual regions and countries.
Trade Talks Episode 120: Extreme Trade: The Rise and Fall of Glasgow’s Shipbuilding
What is the Glasgow effect? Richard Davies explains, and tells the gripping economic story of how shipbuilding drove the Scottish city's boom and bust. Drawing from Davies's new book Extreme Economies (Farrar, Straus and Giroux 2020), Davies, Keynes, and Bown discuss how the economic forces of Marshallian externalities drove the rise of Glaswegian shipbuilding on the River Clyde. They then turn to the combination of factors that led to its downfall, and the numerous economic and social policy failures that have given rise to Glasgow's extremely low life expectancy.