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Rebel on the Canal: Disrupted Trade Access and Social Conflict in China, 1650–1911

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  • Yiming Cao
  • Shuo Chen

Abstract

This paper examines the effects of the abandonment of China's Grand Canal—the world's largest and oldest artificial waterway—which served as a disruption to regional trade access. Using an original dataset covering 575 counties over 262 years, we show that the canal's abandonment contributed to the social turmoil that engulfed North China in the nineteenth century. Counties along the canal experienced an additional 117 percent increase in rebelliousness after the canal's closure relative to their non-canal counterparts. Our findings highlight the important role that continued access to trade routes plays in reducing conflict.

Suggested Citation

  • Yiming Cao & Shuo Chen, 2022. "Rebel on the Canal: Disrupted Trade Access and Social Conflict in China, 1650–1911," American Economic Review, American Economic Association, vol. 112(5), pages 1555-1590, May.
    • Handle: RePEc:aea:aecrev:v:112:y:2022:i:5:p:1555-90
    DOI: 10.1257/aer.20201283
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    References listed on IDEAS

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    1. Carol H. Shiue, 2002. "Transport Costs and the Geography of Arbitrage in Eighteenth-Century China," American Economic Review, American Economic Association, vol. 92(5), pages 1406-1419, December.
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    Cited by:

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    2. Lisha Wang & Jian Wang & Xuepeng Qian, 2023. "Does the bullet train exacerbate urban shrinkage? Lessons from Japan," Papers in Regional Science, Wiley Blackwell, vol. 102(1), pages 187-212, February.
    3. Gan Jin & Günther G. Schulze, 2024. "The Long-term Effect of Western Customs Institution on Firm Innovation in China," Discussion Paper Series 46 JEL Classification: N7, Department of International Economic Policy, University of Freiburg, revised Feb 2024.
    4. Mian Yang & Ruofan He & Panbing Wan, 2024. "The transfer of provincial officials and electricity transactions in China," Public Choice, Springer, vol. 198(3), pages 377-402, March.
    5. Cai, Yang & Zhu, Jiong, 2024. "Cooperative culture and the birth of modern enterprises in China: Evidence from the signing of the Treaty of Shimonoseki," European Economic Review, Elsevier, vol. 163(C).
    6. Linqing Liu & Weiran Wang & Xiaofei Yan & Mengyun Shen & Haizhi Chen, 2023. "The cascade influence of grain trade shocks on countries in the context of the Russia-Ukraine conflict," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-28, December.

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    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • N95 - Economic History - - Regional and Urban History - - - Asia including Middle East
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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