TY - JOUR
T1 - The effects of market integration during the first globalization
T2 - A multi-market approach
AU - Chilosi, David
AU - Federico, Giovanni
N1 - Publisher Copyright:
© 2020 The Author(s) 2020. Published by Oxford University Press on behalf of the European Historical Economics Society. All rights reserved. For permissions, please e-mail: [email protected].
PY - 2021/2/1
Y1 - 2021/2/1
N2 - This paper is a first attempt to measure the effects of international market integration on world trade and welfare in the ''long nineteenth century". We run a multi-market partial equilibrium model, which takes into account the interactions between route-specific changes in trade costs, for the two most traded commodities, cotton and wheat. The collapse in trade costs accounted for 60 percent of the growth of trade for cotton and for 40 percent for wheat. As expected, welfare gains were larger for small open economies, but they were substantial also for large countries, with big differences determined by trade policies.
AB - This paper is a first attempt to measure the effects of international market integration on world trade and welfare in the ''long nineteenth century". We run a multi-market partial equilibrium model, which takes into account the interactions between route-specific changes in trade costs, for the two most traded commodities, cotton and wheat. The collapse in trade costs accounted for 60 percent of the growth of trade for cotton and for 40 percent for wheat. As expected, welfare gains were larger for small open economies, but they were substantial also for large countries, with big differences determined by trade policies.
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U2 - 10.1093/ereh/heaa009
DO - 10.1093/ereh/heaa009
M3 - Article
AN - SCOPUS:85113212968
SN - 1361-4916
VL - 25
SP - 20
EP - 58
JO - European Review of Economic History
JF - European Review of Economic History
IS - 1
ER -