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Cliometric Approaches to International Trade

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Handbook of Cliometrics

Abstract

This chapter gives a broad overview of the literature on the cliometrics of international trade and market integration. We start by motivating this by looking at the lessons from economic theory and, in particular, through the work which considers the effect of trade, openness, and trade policy on growth. Here theory, as well as empirical results, suggests no clear-cut relationship and points to the richness of historical experiences. We then turn to the issue of how to quantify trade and market integration. The former usually relies on customs records and the latter on the availability of prices in different markets. We then go one step back and look at the determinants of trade, usually tested within the framework of the gravity equation, and discuss what factors were behind periods of trade increases and declines and of market integration and disintegration. Finally, as one of the most important determinants of trade, and perhaps the most policy relevant, we include a separate section on trade policy: we both consider the difficulties of constructing a simple quantitative measure and look at what might explain it.

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Notes

  1. 1.

    See also the survey by Nunn and Trefler (2014).

  2. 2.

    Lampe and Sharp look at a large number of individual country level ECMs for data on average tariffs and growth, identifying a multitude of different relationships for different countries and different periods. A similar framework has been adopted recently by Federico et al. (2017) for the trade-growth nexus, with similarly diverse results.

  3. 3.

    We ignore the sizeable literature on domestic market integration here, even though it obviously has a bearing on international trade, and the literature has contributed much to the methodological debate.

  4. 4.

    See the useful discussion on this in Persson (2004).

  5. 5.

    This definition is not uncontroversial. De Vries (2010) distinguishes between soft globalization, which encompasses many things, and might well be applied to the changed trading world after 1500, and hard globalization, or “globalization as outcome,” for example, market integration.

  6. 6.

    See, for example, the comparative account of sources and knowledge on Spanish and British colonial trade as a subset of total foreign trade in Cuenca-Esteban (2008), work on Spanish cotton imports in the eighteenth century by Thomson (2008), and the export series for the British American colonies reconstructed by Mancall et al. (2008, 2013).

  7. 7.

    Following Cournot (1838)

  8. 8.

    See, for example, Obstfeld and Taylor (1997), Jacks (2005, 2006a, b).

  9. 9.

    See, for example, Chartres (1995), Ljungberg (1996), Peña and Sánchez-Albornoz (1984), and Bessler (1990).

  10. 10.

    See, for example, Shiue and Keller (2007), Persson (1999), and Bateman (2011).

  11. 11.

    See the recent paper by Hynes et al. (2012).

  12. 12.

    The effect of wars is also taken up by Jacks (2011), who looks at England during the French Wars to examine the effect of war on market integration and finds that it was mostly through the disruption of international trade linkages and the arrival of news regarding wartime events. This finding is supported by Brunt and Cannon (2014).

  13. 13.

    Their methodology makes use of the residual dispersion of univariate models of relative prices between markets.

  14. 14.

    Analyses of markets outside Europe have generally been neglected, but see the recent study by Panza (2013). With a particular focus on the cotton industry, she shows that the Near East integrated into the global economy at the end of the nineteenth century.

  15. 15.

    A similar approach has been pursued more recently for the case of Argentina during the Belle Epoque by Pinilla and Rayes (2017), who find an important role for transportation costs for Argentinian export success but a less important role for tariffs.

  16. 16.

    For the latter, see, for example, the recent working paper by Chilosi and Federico (2016).

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  1. Vienna University of Economics and Business, Vienna, Austria

    Markus Lampe

  2. University of Southern Denmark, Odense M, Denmark

    Paul Sharp

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  1. BETA/CNRS (UMR 7522), University of Strasbourg Institute for Advanced Study, Strasbourg Cedex, France

    Claude Diebolt

  2. University of Wisconsin Department of Economics, La Crosse, WI, USA

    Michael Haupert

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Lampe, M., Sharp, P. (2019). Cliometric Approaches to International Trade. In: Diebolt, C., Haupert, M. (eds) Handbook of Cliometrics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40458-0_8-2

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    Cliometric Approaches to International Trade
    Published:
    21 February 2019

    DOI: https://doi.org/10.1007/978-3-642-40458-0_8-2

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    Cliometric Approaches to International Trade
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    DOI: https://doi.org/10.1007/978-3-642-40458-0_8-1

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