IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/15434.html
   My bibliography  Save this paper

From a common empire to colonial rule: commodity market disintegration in the Near East

Author

Listed:
  • Panza, Laura

Abstract

This paper investigates the impact of the disruption of the Ottoman Empire on the integration of regional and colonial commodity markets in the Near East. Exploiting a novel dataset on commodity prices in Syria, Egypt, Turkey, France and the UK covering the 1787-1939 period, it assesses the extent of price dispersion across markets before and after the end of the Ottoman Empire and investigates the causes behind the change in market integration. The results indicate that while regional markets disintegrated throughout the period, reflecting the anti-global environment of the interwar era, colonial market linkages strengthened. The empirical findings also highlight that border effects, rather the rise of protection per se, were the main drivers behind the increase of regional price dispersion.

Suggested Citation

  • Panza, Laura, 2020. "From a common empire to colonial rule: commodity market disintegration in the Near East," CEPR Discussion Papers 15434, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15434
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP15434
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stephen J. Redding & Daniel M. Sturm, 2008. "The Costs of Remoteness: Evidence from German Division and Reunification," American Economic Review, American Economic Association, vol. 98(5), pages 1766-1797, December.
    2. Studer, Roman, 2008. "India and the Great Divergence: Assessing the Efficiency of Grain Markets in Eighteenth- and Nineteenth-Century India," The Journal of Economic History, Cambridge University Press, vol. 68(2), pages 393-437, June.
    3. Brent Hansen & Karim Nashashibi, 1975. "Appendixes to "Foreign Trade Regimes and Economic Development: Egypt"," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Egypt, pages 317-350, National Bureau of Economic Research, Inc.
    4. Jan Fidrmuc & Jarko Fidrmuc, 2003. "Disintegration and Trade," Review of International Economics, Wiley Blackwell, vol. 11(5), pages 811-829, November.
    5. Federico, Giovanni, 2011. "When did European markets integrate?," European Review of Economic History, Cambridge University Press, vol. 15(1), pages 93-126, April.
    6. Head, Keith & Mayer, Thierry & Ries, John, 2010. "The erosion of colonial trade linkages after independence," Journal of International Economics, Elsevier, vol. 81(1), pages 1-14, May.
    7. Marks, Daan, 2010. "Unity or diversity? On the integration and efficiency of rice markets in Indonesia, c. 1920-2006," Explorations in Economic History, Elsevier, vol. 47(3), pages 310-324, July.
    8. Georges Ménil & Mathilde Maurel, 1994. "Breaking up a customs union: The case of the Austro-Hungarian Empire in 1919," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 130(3), pages 553-575, September.
    9. Panza, Laura, 2013. "Globalization and the Near East: A Study of Cotton Market Integration in Egypt and Western Anatolia," The Journal of Economic History, Cambridge University Press, vol. 73(3), pages 847-872, September.
    10. Antoni Estevadeordal & Brian Frantz & Alan M. Taylor, 2003. "The Rise and Fall of World Trade, 1870–1939," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 359-407.
    11. Giovanni Federico, 2012. "How much do we know about market integration in Europe?," Economic History Review, Economic History Society, vol. 65(2), pages 470-497, May.
    12. Martin Ravallion, 1986. "Testing Market Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 102-109.
    13. Brent Hansen & Karim Nashashibi, 1975. "Foreign Trade Regimes and Economic Development: Egypt," NBER Books, National Bureau of Economic Research, Inc, number hans75-1, March.
    14. Yousef, Tarik M, 2002. "Egypt's Growth Performance under Economic Liberalism: A Reassessment with New GDP Estimates, 1886-1945," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 561-579, December.
    15. Tarik M. Yousef, 2002. "Egypt’s Growth Performance Under Economic Liberalism: A Reassessment With New GDP Estimates, 1886–1945," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 561-579, December.
    16. Trenkler, Carsten & Wolf, Nikolaus, 2005. "Economic integration across borders: The Polish interwar economy 1921–1937," European Review of Economic History, Cambridge University Press, vol. 9(2), pages 199-231, August.
    17. Andrew Coleman, 2009. "Storage, Slow Transport, and the Law of One Price: Theory with Evidence from Nineteenth-Century U.S. Corn Markets," The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 332-350, May.
    18. Djankov, Simeon & Freund, Caroline, 2002. "Trade Flows in the Former Soviet Union, 1987 to 1996," Journal of Comparative Economics, Elsevier, vol. 30(1), pages 76-90, March.
    19. Eichengreen, Barry, 1996. "Golden Fetters: The Gold Standard and the Great Depression, 1919-1939," OUP Catalogue, Oxford University Press, number 9780195101133, Decembrie.
    20. Madhusudan Ghosh, 2011. "Agricultural Policy Reforms And Spatial Integration Of Food Grain Markets In India," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(2), pages 15-37, June.
    21. Martin Berka, 2009. "Nonlinear Adjustment in Law of One Price Deviations and Physical Characteristics of Goods," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 51-73, February.
    22. Paul L. Fackler & Hüseyin Tastan, 2008. "Estimating the Degree of Market Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 69-85.
    23. Brent Hansen & Karim Nashashibi, 1975. "Introduction to "Foreign Trade Regimes and Economic Development: Egypt"," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Egypt, pages -5--1, National Bureau of Economic Research, Inc.
    24. Grafe, Clemens & Raiser, Martin & Sakatsume, Toshiaki, 2008. "Beyond borders--Reconsidering regional trade in Central Asia," Journal of Comparative Economics, Elsevier, vol. 36(3), pages 453-466, September.
    25. Victoria N. Bateman, 2011. "The evolution of markets in early modern Europe, 1350–1800: a study of wheat prices," Economic History Review, Economic History Society, vol. 64(2), pages 447-471, May.
    26. Li, Zhuo & Panza, Laura & Song, Yong, 2019. "The evolution of ottoman–European market linkages, 1469–1914: Evidence from dynamic factor models," Explorations in Economic History, Elsevier, vol. 71(C), pages 112-134.
    27. Issawi, Charles, 1988. "The Fertile Crescent, 1800-1914: A Documentary Economic History," OUP Catalogue, Oxford University Press, number 9780195049510.
    28. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    29. Ulaş Karakoç, 2018. "Industrial growth in interwar Egypt: first estimates, new insights," European Review of Economic History, European Historical Economics Society, vol. 22(1), pages 53-72.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brunt, Liam & Cannon, Edmund, 2013. "Integration in the English wheat market 1770-1820," Discussion Paper Series in Economics 12/2013, Norwegian School of Economics, Department of Economics.
    2. Chilosi, David & Federico, Giovanni, 2015. "Early globalizations: The integration of Asia in the world economy, 1800–1938," Explorations in Economic History, Elsevier, vol. 57(C), pages 1-18.
    3. Volker Nitsch & Nikolaus Wolf, 2013. "Tear down this wall: on the persistence of borders in trade," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(1), pages 154-179, February.
    4. Chilosi, David & Murphy, Tommy E. & Studer, Roman & Tunçer, A. Coşkun, 2013. "Europe's many integrations: Geography and grain markets, 1620–1913," Explorations in Economic History, Elsevier, vol. 50(1), pages 46-68.
    5. Ferdinand Rauch & Matthias Beestermoller, 2014. "A Dissection of Trading Capital: Cultural persistence of trade in the aftermath of the fall of the Iron Curtain," Economics Series Working Papers 718, University of Oxford, Department of Economics.
    6. John E. Murray & Javier Silvestre, 2020. "Integration in European coal markets, 1833–1913," Economic History Review, Economic History Society, vol. 73(3), pages 668-702, August.
    7. Madhusudan Ghosh, 2010. "Spatial Price Linkages in Regional Food Grain Markets in India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 4(4), pages 495-516, November.
    8. Ulaş Karakoç, 2018. "Industrial growth in interwar Egypt: first estimates, new insights," European Review of Economic History, European Historical Economics Society, vol. 22(1), pages 53-72.
    9. Sylvia, Lane & Benito, Carlos & Berninsone, Rosa Maria, 1981. "Food Consumption in Rural Egypt Bibliography," Working Papers 232848, University of California, Davis, Agricultural Development Systems: Egypt Project.
    10. Giovanni Federico & Paul Sharp, 2013. "The cost of railroad regulation: the disintegration of American agricultural markets in the interwar period," Economic History Review, Economic History Society, vol. 66(4), pages 1017-1038, November.
    11. repec:hal:spmain:info:hdl:2441/6flqrv4et09btppk9s58qgp979 is not listed on IDEAS
    12. Erzan R., 1986. "External account, growth and employment in Egypt and Turkey: historical review and prospects," ILO Working Papers 992485223402676, International Labour Organization.
    13. Fitch, James B. & Khedr, Hassan A. & Whittington, Dale, 1981. "The Economic Efficiency of Water Use in Egyptian Agriculture: Opening Round of a Debate," 1981 Occasional Paper Series No. 2 197135, International Association of Agricultural Economists.
    14. Cagé, Julia & Gadenne, Lucie, 2018. "Tax revenues and the fiscal cost of trade liberalization, 1792–2006," Explorations in Economic History, Elsevier, vol. 70(C), pages 1-24.
    15. repec:ags:ucdegw:232848 is not listed on IDEAS
    16. Beestermöller, Matthias & Rauch, Ferdinand, 2018. "A Dissection of Trading Capital: Trade in the Aftermath of the Fall of the Iron Curtain," The Journal of Economic History, Cambridge University Press, vol. 78(2), pages 358-393, June.
    17. Cagé, Julia & Gadenne, Lucie, 2018. "Tax revenues and the fiscal cost of trade liberalization, 1792–2006," Explorations in Economic History, Elsevier, vol. 70(C), pages 1-24.
    18. Flynn, Eimear & Kren, Janez & Lawless, Martina, 2021. "Early reactions of EU-UK trade flows to Brexit," Papers WP713, Economic and Social Research Institute (ESRI).
    19. A. Agwah, 1978. "Import Distribution, Export Expansion and Consumption Liberalization: The Case of Egypt," Development and Change, International Institute of Social Studies, vol. 9(2), pages 299-329, April.
    20. Stainer, T.F., 1987. "Decline of the Intensive Sector of Nothern Ireland Agriculture: A Regional Case Study of the Effects of EC Policies," 1987 Occasional Paper Series No. 4 197445, International Association of Agricultural Economists.
    21. Jeffrey D. Vitale & Hamady Djourra & Aminata Sidibé, 2009. "Estimating the supply response of cotton and cereal crops in smallholder production systems: recent evidence from Mali," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 519-533, September.
    22. Jopp, Tobias A., 2017. "How does the public perceive alliances? The Central and Allied Powers in World War I," IBF Paper Series 12-17, IBF – Institut für Bank- und Finanzgeschichte / Institute for Banking and Financial History, Frankfurt am Main.

    More about this item

    Keywords

    market integration; Near east; Colonial linkages; Interwar era;
    All these keywords.

    JEL classification:

    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • N95 - Economic History - - Regional and Urban History - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:15434. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.