West versus East: Early Globalization and the Great Divergence
AbstractThis paper extends our previous work on grain market integration across Europe and the Americas in the eighteenth and nineteenth centuries (Dobado, García-Hiernaux and Guerrero, 2012). By using the same econometric methodology, we now present: 1) a search for statistical evidence in the East of an “Early Globalization” comparable to the one ongoing in the West by mid eighteenth century; 2) a study on the integration of grain markets in China and Japan and its functioning in comparison to Western countries; 3) a discussion of the relevance of our findings for the debate on the Great Divergence. Our main conclusions are: 1) substantial differences in the degree of integration and the functioning of grain markets are observed between East and West; 2) a certain degree of integration may be reached through different combinations of factors (agents, policies, etc.) and with dissimilar effects on long-run economic growth; 3) the absence of an “Early Globalization” in the East reveals the existence of some economic and institutional limitations in this part of the world and contributed to its “Great Divergence” with the West from at least the eighteenth century.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 48773.
Date of creation: Jul 2013
Date of revision:
economic history; market integration; globalization; great divergence; time series analysis;
Other versions of this item:
- Rafael Dobado-González & Alfredo García-Hiernaux & David Guerrero-Burbano, 2013.
"West versus East: Early globalization and thr great divergence
[Oeste frente a Este: Globalización temprana y gran divergencia]," Documentos de trabajo de la Facultad de Ciencias EconÃ³micas y Empresariales 13-08, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
- N0 - Economic History - - General
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