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Defying gravity: The Imperial Economic Conference and the reorientation of Canadian trade

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  • Jacks, David S.

Abstract

In the wake of the Great Depression, the Canadian government embarked on a stunning reversal in its commercial policy. A key element of its response was the promotion of intra-imperial trade at the Imperial Economic Conference of 1932. This paper addresses whether or not Canada was able to defy gravity and divert trade flows towards other signatories at Ottawa. The results suggest that the conference was a failure from this perspective. Potential sources of this failure include unreasonable expectations about the likely reductions in trade costs and a neglect of key considerations related to certainty and credibility.

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  • Jacks, David S., 2014. "Defying gravity: The Imperial Economic Conference and the reorientation of Canadian trade," Explorations in Economic History, Elsevier, vol. 53(C), pages 19-39.
    • Handle: RePEc:eee:exehis:v:53:y:2014:i:c:p:19-39
    DOI: 10.1016/j.eeh.2013.12.002
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    Cited by:

    1. Varian, Brian, 2018. "The economics of Edwardian imperial preference: what can New Zealand reveal?," Economic History Working Papers 88298, London School of Economics and Political Science, Department of Economic History.
    2. repec:hal:spmain:info:hdl:2441/6flqrv4et09btppk9s58qgp979 is not listed on IDEAS
    3. David S. Jacks & Dennis Novy, 2020. "Trade Blocs and Trade Wars during the Interwar Period," Asian Economic Policy Review, Japan Center for Economic Research, vol. 15(1), pages 119-136, January.
    4. Cagé, Julia & Gadenne, Lucie, 2018. "Tax revenues and the fiscal cost of trade liberalization, 1792–2006," Explorations in Economic History, Elsevier, vol. 70(C), pages 1-24.
    5. Roberto Bonfatti, 2012. "Trade and the Pattern of European Imperialism, 1492-2000," Economics Series Working Papers 618, University of Oxford, Department of Economics.
    6. Cagé, Julia & Gadenne, Lucie, 2018. "Tax revenues and the fiscal cost of trade liberalization, 1792–2006," Explorations in Economic History, Elsevier, vol. 70(C), pages 1-24.
    7. Adam, Marc Christopher, 2019. "Return of the tariffs: The interwar trade collapse revisited," Discussion Papers 2019/8, Free University Berlin, School of Business & Economics.
    8. David M Higgins & Brian D Varian, 2021. "Britain’s Empire Marketing Board and the failure of soft trade policy, 1926–33 [Bringing another empire alive? The Empire Marketing Board and the construction of Dominion identity, 1926–1933]," European Review of Economic History, European Historical Economics Society, vol. 25(4), pages 780-805.
    9. Brian D. Varian, 2022. "Imperial preference before the Ottawa Agreements: Evidence from New Zealand's Preferential and Reciprocal Trade Act of 1903," Economic History Review, Economic History Society, vol. 75(4), pages 1214-1241, November.

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