Quotation Keller, Wolfgang, Lampe, Markus, Shiue, Carol H. 2021. International Transactions: Real Trade and Factor Flows. In: The Cambridge Economic History of the Modern World, Vol. I: 1700-1870, Hrsg. Stephen Broadberry, Kyoji Fukao, 412-437. Cambridge: Cambridge University Press.




This chapter describes broad regional and temporal trends in the evolution of international trade and international factor flows between 1700 and 1870, including key differences in trade costs across space and time. We find trade links in western Europe and the European colonies of North America intensified at the same time these regions experienced the initial Industrial Revolution and the spread of industrialization, which led to sustained economic growth. At the same time, global differences in specialization and income emerged. To understand the contribution of global market forces as well as colonialism to these differences, the chapter lays out theoretical reasons for links between trade and economic growth and examines related historical arguments and evidence. We conclude that trade contributed to global divergence, but the magnitude and mechanisms through which trade affected global welfare lies not so much in the direct impact of trade and specialization as in multiplier effects emerging from the interactions of trade with other factors that affect economic development.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Chapter in edited volume
Language English
Title International Transactions: Real Trade and Factor Flows
Title of whole publication The Cambridge Economic History of the Modern World, Vol. I: 1700-1870
Editor Stephen Broadberry, Kyoji Fukao
Page from 412
Page to 437
Location Cambridge
Publisher Cambridge University Press
Year 2021
Reviewed? Y
URL https://doi.org/10.1017/9781316671566.019
ISBN 9781316671566
Open Access N


Lampe, Markus (Details)
Keller, Wolfgang (University of Colorado, Boulder, United States/USA)
Shiue, Carol H. (University of Colorado, Boulder, United States/USA)
Institute for Economic and Social History IN (Details)
Research Institute for Spatial and Real Estate Economics FI (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5340 Economic history (Details)
6521 Economic history (Details)
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