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Two Great Trade Collapses: The Interwar Period & Great Recession Compared

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  • O'Rourke, Kevin

Abstract

In this paper, I offer some preliminary comparisons between the trade collapses of the Great Depression and Great Recession. The commodity composition of the two trade collapses was quite similar, but the latter collapse was much sharper due to the spread of manufacturing across the globe during the intervening period. The increasing importance of manufacturing also meant that the trade collapse was more geographically balanced in the later episode. Protectionism was much more severe during the 1930s than after 2008, and in the UK case at least helped to skew the direction of trade away from multilateralism and towards Empire. This had dangerous political consequences.

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  • O'Rourke, Kevin, 2017. "Two Great Trade Collapses: The Interwar Period & Great Recession Compared," CEPR Discussion Papers 12286, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:12286
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    1. Industrialization, Gold and Empires: Trade Collapse in the Great Recession vs. the Great Depression
      by missiaia in NEP-HIS blog on 2017-10-24 21:26:27

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    More about this item

    Keywords

    Trade collapse; Great recession; Great depression; Protectionism;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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