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Commodity Market Disintegration in the Interwar Period

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  • O'Rourke, Kevin
  • Jacks, David
  • Hynes, William

Abstract

Using data collected by the International Institute of Agriculture, we document the disintegration of international commodity markets between 1913 and 1938. There was dramatic disintegration during World War I, gradual reintegration during the 1920s, and then a very substantial disintegration after 1929. The period saw the unravelling of a great many of the integration gains of the 1870-1913 period. While increased transport costs certainly help to explain the wartime disintegration, they cannot explain the post-1929 increase in trade costs. Protectionism seems the most likely alternative candidate.

Suggested Citation

  • O'Rourke, Kevin & Jacks, David & Hynes, William, 2009. "Commodity Market Disintegration in the Interwar Period," CEPR Discussion Papers 7189, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:7189
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    More about this item

    Keywords

    Commodity markets; Deglobalization; Disintegration; Great depression; Interwar economy; Trade;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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