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Profitability of Slave and Long-Distance Trading in Context: The Case of Eighteenth-Century France

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  • DAUDIN, GUILLAUME

Abstract

This article studies slave and other long-distance trades in eighteenth-century France. The data cover 238 ventures from seven French harbors between 1710 and 1780. Using the undiscounted benefit-cost ratio as a proxy for the internal rate of return, the article shows that these investments were more liquid, shorter, and more profitable than private notarized credit, without higher risk. They were safer and had a shorter duration than government bonds, without being less liquid or less profitable. The conclusion, that investment in these trades was preferable to domestic alternatives, may be explained by barriers to entry.

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  • Daudin, Guillaume, 2004. "Profitability of Slave and Long-Distance Trading in Context: The Case of Eighteenth-Century France," The Journal of Economic History, Cambridge University Press, vol. 64(1), pages 144-171, March.
    • Handle: RePEc:cup:jechis:v:64:y:2004:i:01:p:144-171_00
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    Cited by:

    1. Kevin H. O'Rourke, Leandro Prados de la Escosura and Guilllaume Daudin, 2008. "Trade and Empire, 1700-1870," The Institute for International Integration Studies Discussion Paper Series iiisdp249, IIIS.
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    3. Gregory Price & Warren Whatley, 2021. "Did profitable slave trading enable the expansion of empire?: The Asiento de Negros, the South Sea Company and the financial revolution in Great Britain," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 15(3), pages 675-718, September.
    4. Sarah Guilland Carmichael & Alexandra de Pleijt & Jan Luiten van Zanden & Tine De Moor, 2015. "Reply to Tracy Dennison and Sheilagh Ogilvie: The European Marriage pattern and the Little Divergence," Working Papers 0070, Utrecht University, Centre for Global Economic History.
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    6. repec:hal:spmain:info:hdl:2441/684 is not listed on IDEAS
    7. repec:spo:wpecon:info:hdl:2441/6149 is not listed on IDEAS
    8. Baafi Antwi, Joseph, 2011. "Western Guilt and Third World Development: Part 1," MPRA Paper 28422, University Library of Munich, Germany, revised 26 Jan 2011.
    9. Guillaume Daudin, 2003. "Do Frontiers give of do frontiers take ? The case of intercontinental trade in France at the end of the Ancien Régime," Documents de Travail de l'OFCE 2003-03, Observatoire Francais des Conjonctures Economiques (OFCE).
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    11. Albin Skog & Örjan Sölvell, 2020. "The dark side of agglomeration, sustained wealth and transposition of trading institutions—the case of Bordeaux in the 18th and 19th centuries," Journal of Economic Geography, Oxford University Press, vol. 20(1), pages 67-91.
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    13. Guillaume Daudin, 2006. "Profits du commerce intercontinental et croissance dans la France du xviiie siècle," Revue économique, Presses de Sciences-Po, vol. 57(3), pages 605-613.
    14. repec:spo:wpmain:info:hdl:2441/6149 is not listed on IDEAS
    15. Gregg, Amanda & Ruderman, Anne, 2021. "Cross-cultural trade and the slave ship the Bonne Société: baskets of goods, diverse sellers, and time pressure on the African coast," Economic History Working Papers 112507, London School of Economics and Political Science, Department of Economic History.
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