Malta and the Nineteenth Century Grain Trade: British free trade in a microcosm of Empire?
AbstractIt is often assumed that Britain’s colonies followed the British doctrine of free trade in the second half of the nineteenth century. Malta, which became a British colony in 1814, did indeed become an early free trader. However, she failed to liberalize the grain trade, even when the mother country famously repealed the Corn Laws. This paper documents that although institutions changed over the years, the ad valorem equivalents of the duties on wheat did not. The reason for this seems to be that administrators were convinced that is was not possible to fund government spending in any other way. The duties on grain in Malta were therefore not protectionist, but rather for revenue purposes, in contrast to the UK Corn Laws. Taxing an inelastic demand for foreign wheat by Maltese, who were unable to grow enough food to support themselves, was certainly an effective way of raising revenue, but probably not the fairest one, as contemporaries were well aware.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 10-03.
Length: 16 pages
Date of creation: Jan 2010
Date of revision:
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Malta; wheat; trade policy; British Empire;
Find related papers by JEL classification:
- N4 - Economic History - - Government, War, Law, International Relations, and Regulation
- N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
- N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-01-23 (Agricultural Economics)
- NEP-ALL-2010-01-23 (All new papers)
- NEP-HIS-2010-01-23 (Business, Economic & Financial History)
- NEP-INT-2010-01-23 (International Trade)
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