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Have Unequal Treaties Fostered Domestic Market Integration in Late Imperial China?

In: Institutional Change and China Capitalism Frontier of Cliometrics and its Application to China

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  • Jean-Louis Combes
  • Mary-Françoise Renard
  • Shuo Shi

Abstract

The objective of this chapter is to study the relationship between international trade openness and domestic market integration in Late Imperial China. More specifically, we focus on a natural experiment, namely the unequal treaties of the second half of the 19th century that lifted the long-existing international trade restriction system. The integration of domestic markets is analyzed while looking at the existence of a long-term common movement in the grain prices between provinces. The econometric results show that trade openness did not lead to better integration of the Chinese domestic grain markets. Our results support the hypothesis according to which long-distance trade has not generated efficiency gains in domestic markets. We evidence a strong segmentation between domestic and international grain markets owing to different traded products and operators.

Suggested Citation

  • Jean-Louis Combes & Mary-Françoise Renard & Shuo Shi, 2022. "Have Unequal Treaties Fostered Domestic Market Integration in Late Imperial China?," World Scientific Book Chapters, in: Antoine Le Riche & Antoine Parent & Lei Zhang (ed.), Institutional Change and China Capitalism Frontier of Cliometrics and its Application to China, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9781800611238_0002
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    More about this item

    Keywords

    China; Macroeconomics; Cliometrics; Institutional Economics; Complexity; Economics; International Trade; Applied Econometrics; Econometrics; Empirical Finance; Behavioral Finance; Economic History; Sociology; Gender Studies;
    All these keywords.

    JEL classification:

    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • F10 - International Economics - - Trade - - - General
    • B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925
    • B1 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925
    • F15 - International Economics - - Trade - - - Economic Integration

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