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Protectionism, agricultural prices and relative factor incomes: Sweden’s wage-rental ratio, 1877-1926

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  • Bohlin, Jan

    ()
    (Department of Economic History, School of Business, Economics and Law, Göteborg University)

  • Larsson, Svante

    ()
    (Department of Economic History, School of Business, Economics and Law, Göteborg University)

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    Abstract

    Trends in wage-rental ratios have figured prominently in the recent literature on factor price convergence and globalisation in the late nineteenth century. In that literature Sweden has been described as a free trade country whose wage-rental ratio exhibited a distinguished upward trend before World War I. This article presents a new series of land prices which indicates an increase in land rentals and an evolution of the wage-rental ratio more in line with other European protectionist countries. We explore the determinants of the Swedish wage-rental ratio and assess the relative importance of protectionism and the change in the product mix from arable to animal products in Swedish agriculture.

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    File URL: http://hdl.handle.net/2077/2957
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    Bibliographic Info

    Paper provided by University of Gothenburg, Department of Economic History in its series Göteborg Papers in Economic History with number 7.

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    Length: 36 pages
    Date of creation: 01 Dec 2006
    Date of revision:
    Handle: RePEc:hhs:gunhis:0007

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    Postal: Department of Economic History, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG
    Phone: 031-773 47 50
    Fax: 031-773 47 39
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    Web page: http://www.econhist.gu.se/
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    Keywords: Economic History; Land prices; wages; wage-rental ratio; protectionism; Sweden;

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    1. Williamson Jeffrey G., 1995. "The Evolution of Global Labor Markets since 1830: Background Evidence and Hypotheses," Explorations in Economic History, Elsevier, vol. 32(2), pages 141-196, April.
    2. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, December.
    3. Williamson, Jeffrey G., 2002. "Land, Labor, And Globalization In The Third World, 1870 1940," The Journal of Economic History, Cambridge University Press, vol. 62(01), pages 55-85, March.
    4. Lindert, Peter H., 1974. "Land Scarcity and American Growth," The Journal of Economic History, Cambridge University Press, vol. 34(04), pages 851-884, December.
    5. David Greasley & Les Oxley, 2005. "Refrigeration And Distribution: New Zealand Land Prices And Real Wages 1873-1939," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 45(1), pages 23-44, 03.
    6. O'Rourke, Kevin H & Taylor, Alan M & Williamson, Jeffrey G, 1996. "Factor Price Convergence in the Late Nineteenth Century," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 37(3), pages 499-530, August.
    7. Hoffman, Philip T., 1991. "Land Rents and Agricultural Productivity: The Paris Basin, 1450–1789," The Journal of Economic History, Cambridge University Press, vol. 51(04), pages 771-805, December.
    8. J. L. Van Zanden, 1991. "The first green revolution: the growth of production and productivity in European agriculture, 1870-1914," Economic History Review, Economic History Society, vol. 44(2), pages 215-239, 05.
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