Transport Costs and the Geography of Arbitrage in Eighteenth-Century China
AbstractTrade has been considered a condition for growth and development, a view that might have merits in explaining the rise of the Western world. I use a new data set from archival sources of eighteenth-century China to revisit this question. This analysis suggests previous studies of market integration, which attribute much growth to a reduction in transport costs, have overestimated these effects. I find the overall level of market integration in China was higher than previously thought, and, intertemporal effects are important substitutes for trade. Both factors reduce the importance of trade as a unique explanation for subsequent growth.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 92 (2002)
Issue (Month): 5 (December)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Gallup, John L. & Sachs, Jeffrey D. & Mellinger, Andrew, . "Geography and Economic Development," Instructional Stata datasets for econometrics geodata, Boston College Department of Economics.
- Qiang Chen, 2013. "Climate Shocks, State Capacity, and Peasant Uprisings in North China during 25-1911 CE," SDU Working Papers 2013-01, School of Economics, Shandong University.
- Martin Uebele & Tim Grünebaum & Michael Kopsidis, 2013. "King's law and food storage in Saxony, c. 1790-1830," CQE Working Papers 2613, Center for Quantitative Economics (CQE), University of Muenster.
- Keller, Wolfgang & Shiue, Carol Hua, 2004.
"Markets in China and Europe on the Eve of the Industrial Revolution,"
CEPR Discussion Papers
4420, C.E.P.R. Discussion Papers.
- Carol H. Shiue & Wolfgang Keller, 2007. "Markets in China and Europe on the Eve of the Industrial Revolution," American Economic Review, American Economic Association, vol. 97(4), pages 1189-1216, September.
- Carol H. Shiue & Wolfgang Keller, 2004. "Markets in China and Europe on the Eve of the Industrial Revolution," NBER Working Papers 10778, National Bureau of Economic Research, Inc.
- Keller, Wolfgang & Shiue, Carol Hua, 2003.
"The Origins of Spatial Interaction,"
CEPR Discussion Papers
4138, C.E.P.R. Discussion Papers.
- Wolfgang Keller & Carol H. Shiue, 2004.
"Market Integration and Economic Development: A Long-run Comparison,"
NBER Working Papers
10300, National Bureau of Economic Research, Inc.
- Wolfgang Keller & Carol H. Shiue, 2007. "Market Integration and Economic Development: A Long-run Comparison," Review of Development Economics, Wiley Blackwell, vol. 11(1), pages 107-123, 02.
- Keller, Wolfgang & Shiue, Carol Hua, 2004. "Market Integration and Economic Development: A Long-Run Comparison," CEPR Discussion Papers 4310, C.E.P.R. Discussion Papers.
- Li, Zhigang & Chen, Yu, 2013. "Estimating the social return to transport infrastructure: A price-difference approach applied to a quasi-experiment," Journal of Comparative Economics, Elsevier, vol. 41(3), pages 669-683.
- Qiang Chen, 2012. "Climate Shocks, Dynastic Cycles, and Nomadic Conquests: Evidence from Historical China," SDU Working Papers 2012-01, School of Economics, Shandong University.
- Xin Meng & Nancy Qian & Pierre Yared, 2010.
"The Institutional Causes of China's Great Famine, 1959-61,"
NBER Working Papers
16361, National Bureau of Economic Research, Inc.
- Meng, Xin & Qian, Nancy & Yared, Pierre, 2010. "The Institutional Causes of China's Great Famine, 1959-61," CEPR Discussion Papers 8012, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.