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The French (Trade) Revolution of 1860: Intra-Industry Trade and Smooth Adjustment

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Listed:
  • Stéphane Bécuwe

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • Bertrand Bertrand Blancheton

    (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

  • Christopher M Meissner

Abstract

The Cobden-Chevalier treaty of 1860 eliminated French import prohibitions and lowered tariffs between France and Great Britain. The policy change was largely unexpected and unusually free from direct lobbying. A series of commercial treaties with other nations followed. Post-1860, we find a significant rise in French intra-industry trade. Sectors that liberalized more experienced higher two-way trade. Our findings are consistent with the idea that trade liberalization led to "smooth adjustment" that avoided costly inter-sectoral re-allocations of factors.

Suggested Citation

  • Stéphane Bécuwe & Bertrand Bertrand Blancheton & Christopher M Meissner, 2021. "The French (Trade) Revolution of 1860: Intra-Industry Trade and Smooth Adjustment," Post-Print hal-03466906, HAL.
    • Handle: RePEc:hal:journl:hal-03466906
    DOI: 10.1017/S0022050721000371
    Note: View the original document on HAL open archive server: https://hal.science/hal-03466906
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    Cited by:

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services

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