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A tale of two globalizations: gains from trade and openness 1800–2010

Author

Listed:
  • Giovanni Federico

    (Università di Pisa
    CEPR)

  • Antonio Tena-Junguito

    (Universidad Carlos III de Madrid)

Abstract

This paper compares the waves of globalization before the outbreak of the Great Recession in 2007 with its alleged historical antecedent before the outbreak of World War One. We describe trends in trade and openness, investigate the proximate causes of changes in openness and estimate the gains from trade from the early nineteenth century onwards. Our results suggest that the conventional wisdom has to be revised. The first wave of globalization started around 1820 and culminated around 1870. In the next century, trade continued to grow, with the exception of the Great Depression, but openness and gains fluctuated widely. They resumed a clear upward trend from the early 1970s. By 2007, the world was more open than a century earlier and its inhabitants gained from trade substantially more than their ancestors did.

Suggested Citation

  • Giovanni Federico & Antonio Tena-Junguito, 2017. "A tale of two globalizations: gains from trade and openness 1800–2010," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(3), pages 601-626, August.
    • Handle: RePEc:spr:weltar:v:153:y:2017:i:3:d:10.1007_s10290-017-0279-z
    DOI: 10.1007/s10290-017-0279-z
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    3. Nicole Palan & Nadia Simoes & Nuno Crespo, 2021. "Measuring fifty years of trade globalisation," The World Economy, Wiley Blackwell, vol. 44(6), pages 1859-1884, June.
    4. HAYAKAWA Kazunobu & JINJI Naoto & MATSUURA Toshiyuki & YOSHIMI Taiyo, 2019. "Costs of Utilizing Regional Trade Agreements," Discussion papers 19054, Research Institute of Economy, Trade and Industry (RIETI).
    5. David Chilosi & Giovanni Federico, 2021. "The effects of market integration during the first globalization: a multi-market approach," European Review of Economic History, European Historical Economics Society, vol. 25(1), pages 20-58.
    6. Giovanni Federico & Paul Sharp & Antonio Tena-Junguito, 2017. "Openness and growth in a historical perspective: a VECM approach," Working Papers 0118, European Historical Economics Society (EHES).
    7. Christopher David Absell, 2020. "The rise of coffee in the Brazilian south‐east: tariffs and foreign market potential, 1827–40," Economic History Review, Economic History Society, vol. 73(4), pages 964-990, November.
    8. Angélica Domínguez-Cardoza & Adelina Garamow & Josefin Meyer, 2022. "Global Commodity Markets and Sovereign Risk across 150 Years," Discussion Papers of DIW Berlin 2020, DIW Berlin, German Institute for Economic Research.
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    16. Naoto JINJI & Kazunobu HAYAKAWA & Nuttawut LAKSANAPANYAKUL & Toshiyuki MATSUURA & Taiyo YOSHIMI, 2020. "A New Approach for Quantifying the Costs of Utilizing Regional Trade Agreements," Discussion papers e-19-010, Graduate School of Economics , Kyoto University.
    17. Peter A.G. van Bergeijk, 2019. "Deglobalization 2.0," Books, Edward Elgar Publishing, number 18560.
    18. Giuseppe De Arcangelis & Rama Dasi Mariani & Federico Nastasi, 2020. "Migration and Trade during the Belle Époque in Argentina (1870-1913)," Working Papers 11/20, Sapienza University of Rome, DISS.
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    More about this item

    Keywords

    Globalization; Trade openness; Gains of trade; Nineteenth and twentieth century;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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