Does Bilateralism Promote Trade? Nineteenth Century Liberalization Revisited
Abstract
Textbook accounts of the Anglo-French trade agreement of 1860 argue that it heralded the beginning of a liberal trading order. This alleged success has much interest from a policy point of view: unlike modern GATT/WTO multilateral agreements, it rested on bilateral negotiations. But, in reality, how great were its effects? With the help of new data on international trade we provide empirical evidence. We find that the Anglo-French treaty and subsequent network of Most Favoured Nation (MFN) trade agreements coincided with the end of a period of unilateral liberalization across the world, and that it did not contribute to expand trade at all. This is contrary to a deeply rooted belief among economists and economic historians. We conclude that, contrary to a popular wisdom, bilateralism did not promote trade in the 19th century.Download Info
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Bibliographic Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5423.Length:
Date of creation: Dec 2005
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Handle: RePEc:cpr:ceprdp:5423
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Related research
Keywords: Anglo-French treaty; bilateralism; liberalization; MFN; multilateralism; trade policy;Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-29 (All new papers)
- NEP-HIS-2006-01-29 (Business, Economic & Financial History)
- NEP-HPE-2006-01-29 (History & Philosophy of Economics)
- NEP-INT-2006-01-29 (International Trade)
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Guillaume Daudin & Kevin H. O’Rourke & Leandro Prados de la Escosura, 2008.
"Trade and Empire, 1700-1870,"
Documents de Travail de l'OFCE
2008-24, Observatoire Francais des Conjonctures Economiques (OFCE).
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- Kevin H. O’Rourke & Leandro Prados de la Escosura & Guillaume Daudin, 2008. "Trade and Empire, 1700-1870," Trinity Economics Papers tep0208, Trinity College Dublin, Department of Economics, revised May 2008.
- Kevin H. O'Rourke, Leandro Prados de la Escosura and Guilllaume Daudin, 2008. "Trade and Empire, 1700-1870," The Institute for International Integration Studies Discussion Paper Series iiisdp249, IIIS.
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"Trade Booms, Trade Busts, and Trade Costs,"
CESifo Working Paper Series
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- Jacks, David S. & Meissner, Christopher M. & Novy, Dennis, 2011. "Trade booms, trade busts, and trade costs," Journal of International Economics, Elsevier, vol. 83(2), pages 185-201, March.
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"How Much Trade Liberalization Was There in the World Before and After Cobden-Chevalier?,"
The Journal of Economic History,
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NBER Working Papers
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