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Technology and Geography in the Second Industrial Revolution: New Evidence from the Margins of Trade

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Listed:
  • Michael Huberman
  • Christopher C.M. Meissner
  • Kim Oosterlinck

Abstract

Belle Époque Belgium recorded an unprecedented trade boom. Exploiting a new granular trade dataset, we find that the number of products delivered abroad and destinations serviced more than doubled in less than 40 years. To explain this remarkable achievement, we study the relationship between trade costs and the intensive and extensive margins of trade. The establishment of a foreign diplomatic network that lowered beachhead costs and enabled the entry of new products was an essential fact of the trade boom. Interestingly, the expansion in trade in certain sectors did not translate into faster productivity growth. We offer some explanations.

Suggested Citation

  • Michael Huberman & Christopher C.M. Meissner & Kim Oosterlinck, 2017. "Technology and Geography in the Second Industrial Revolution: New Evidence from the Margins of Trade," ULB Institutional Repository 2013/247672, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/247672
    Note: SCOPUS: re.j
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    1. Le lien entre échanges et croissance lors de la première mondialisation
      by Martin Anota in D'un champ l'autre on 2015-02-10 00:26:36

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    17. Alexander, Patrick D. & Keay, Ian, 2018. "A general equilibrium analysis of Canada’s national policy," Explorations in Economic History, Elsevier, vol. 68(C), pages 1-15.
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913

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