Global Trade and the Maritime Transport Revolution
AbstractWhat is the role of transport improvements in globalization? We argue that the nineteenth century is the ideal testing ground for this question: freight rates fell on average by 50% while global trade increased 400% from 1870 to 1913. We estimate the first indices of bilateral freight rates for the period and directly incorporate these into a standard gravity model. We also take the endogeneity of bilateral trade and freight rates seriously and propose an instrumental variables approach. The results are striking as we find no evidence that the maritime transport revolution was the primary driver of the late nineteenth century global trade boom. Rather, the most powerful forces driving the boom were those of income growth and convergence.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14139.
Date of creation: Jun 2008
Date of revision:
Publication status: published as David S Jacks & Krishna Pendakur, 2010. "Global Trade and the Maritime Transport Revolution," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 745-755, October.
Note: DAE ITI
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- David S Jacks & Krishna Pendakur, 2010. "Global Trade and the Maritime Transport Revolution," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 745-755, November.
- F15 - International Economics - - Trade - - - Economic Integration
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
- N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-05 (All new papers)
- NEP-HIS-2008-07-05 (Business, Economic & Financial History)
- NEP-INT-2008-07-05 (International Trade)
- NEP-OPM-2008-07-05 (Open Economy Macroeconomics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dan Liu & Christopher M. Meissner, 2013. "Market Potential and the Rise of US Productivity Leadership," NBER Working Papers 18819, National Bureau of Economic Research, Inc.
- Jacks, David S. & Meissner, Christopher M. & Novy, Dennis, 2011.
"Trade booms, trade busts, and trade costs,"
Journal of International Economics, Elsevier,
Elsevier, vol. 83(2), pages 185-201, March.
- David S. Jacks & Christopher M. Meissner & Dennis Novy, 2009. "Trade Booms, Trade Busts, and Trade Costs," CESifo Working Paper Series 2767, CESifo Group Munich.
- David S. Jacks & Christopher M. Meissner & Dennis Novy, 2009. "Trade Booms, Trade Busts, and Trade Costs," NBER Working Papers 15267, National Bureau of Economic Research, Inc.
- Jacks, David S; Meissner, Christopher; Novy, Dennis, 2010. "Trade Booms, Trade Busts and Trade Costs," CAGE Online Working Paper Series, Competitive Advantage in the Global Economy (CAGE) 33, Competitive Advantage in the Global Economy (CAGE).
- Kym Anderson, 2012. "Costing Global Trade Barriers, 1900 to 2050," Departmental Working Papers, The Australian National University, Arndt-Corden Department of Economics 2012-08, The Australian National University, Arndt-Corden Department of Economics.
- David Harvey & Neil Kellard & Jakob Madsen & Mark Wohar, 2012. "Trends and Cycles in Real Commodity Prices: 1650-2010," CEH Discussion Papers 010, Centre for Economic History, Research School of Economics, Australian National University.
- Klasing, Mariko & Milionis, Petros, 2012.
"Reassessing the Evolution of World Trade, 1870-1949,"
39555, University Library of Munich, Germany.
- Milionis, Petros & Klasing, Mariko J., 2012. "Reassessing the Evolution of World Trade, 1870-1949," GGDC Research Memorandum, Groningen Growth and Development Centre, University of Groningen GD-126, Groningen Growth and Development Centre, University of Groningen.
- Lin, Faqin & Sim, Nicholas C.S., 2013. "Trade, income and the Baltic Dry Index," European Economic Review, Elsevier, Elsevier, vol. 59(C), pages 1-18.
- Pinilla, Vicente & Serranoz, Raul, 2008. "The agricultural and food trade in the first globalisation: Spanish table wine exports 1871 to 1935 â€“ a case study," Working Papers, American Association of Wine Economists 42657, American Association of Wine Economists.
- Klovland, Jan Tore, 2009. "New evidence on the fluctuations in ocean freight rates in the 1850s," Explorations in Economic History, Elsevier, Elsevier, vol. 46(2), pages 266-284, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.