Working Paper: CEPR ID: DP15591
Authors: Vincent Geloso; Maja Pedersen; Paul Sharp
Abstract: Previous work has demonstrated the potential for wheat market integration between the US and the UK before the ‘first era of globalization’ in the second half of the nineteenth century. It was however frequently interrupted by policy and ‘exogenous’ events such as war. This paper adds Canada to this story by looking at trade and price data, as well as contemporary debates. We find that she faced similar barriers to the US, and that membership of the British Empire was therefore not a great benefit. We also describe the limitations she faced accessing the US market, in particular after American independence. Transportation costs do not appear to be the main barrier to the emergence of a globalized economy before around 1850.
Keywords: British Empire; Canada; Globalization; Market Integration; United Kingdom; United States; Wheat
JEL Codes: N51; N53; N71; N73
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Canada was somewhat integrated with U.S. wheat market (N52) | Canada was not integrated with U.K. market (N22) |
| American independence (N41) | Canadian and U.S. markets increasingly integrated (N22) |
| 1831 Canada Trade Act (N61) | Canadian and U.S. markets increasingly integrated (N22) |
| Transportation costs (L91) | market integration (F02) |
| Institutional barriers and wartime disruptions (N44) | market integration (F02) |
| Key policy changes (E65) | market integration (F02) |
| U.S. price (P22) | Canadian prices (N92) |
| Canadian prices (N92) | U.K. prices (P22) |