IDEAS home Printed from https://ideas.repec.org/a/bla/ehsrev/v73y2020i3p668-702.html
   My bibliography  Save this article

Integration in European coal markets, 1833–1913

Author

Listed:
  • John E. Murray
  • Javier Silvestre

Abstract

This article analyses coal market integration in Europe over the long nineteenth century. The market integration of coal, a key commodity associated with the industrial revolution, is an aspect of European economic history that has received little attention. The literature on the evolution of markets has concentrated on agricultural products, mostly cereals. This article examines intra‐ and international market integration in the principal coal‐producing countries, Britain, Germany, France, and Belgium; and adds three main consuming southern European countries to the analysis of the international market. It provides new evidence on prices, as well as trade, and uses a straightforward approach to address coal price behaviour. Despite shocks, clear trends toward integration in both domestic and international markets can be observed, even if by one of our measures the latter started at a later date. Processes of market integration, however, seemed to slow from the end of the nineteenth century. Explanations are offered as to the causes of the extent and timing of integrations: reductions, mainly, in transportation costs, but also in information costs, and, in the international market, protectionism. The influence of cartels, on the other hand, may have been limited, particularly in the international market.

Suggested Citation

  • John E. Murray & Javier Silvestre, 2020. "Integration in European coal markets, 1833–1913," Economic History Review, Economic History Society, vol. 73(3), pages 668-702, August.
  • Handle: RePEc:bla:ehsrev:v:73:y:2020:i:3:p:668-702
    DOI: 10.1111/ehr.12937
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ehr.12937
    Download Restriction: no

    File URL: https://libkey.io/10.1111/ehr.12937?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ejrnaes, Mette & Persson, Karl Gunnar, 2000. "Market Integration and Transport Costs in France 1825-1903: A Threshold Error Correction Approach to the Law of One Price," Explorations in Economic History, Elsevier, vol. 37(2), pages 149-173, April.
    2. Fremdling Rainer, 2003. "European Railways 1825-2001, an Overview," Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook, De Gruyter, vol. 44(1), pages 209-221, June.
    3. David Chilosi & Giovanni Federico, 2021. "The effects of market integration during the first globalization: a multi-market approach," European Review of Economic History, Oxford University Press, vol. 25(1), pages 20-58.
    4. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, vol. 66(1), pages 47-78, January.
    5. Chilosi, David & Federico, Giovanni, 2015. "Early globalizations: The integration of Asia in the world economy, 1800–1938," Explorations in Economic History, Elsevier, vol. 57(C), pages 1-18.
    6. Theo Balderston, 2010. "The economics of abundance: coal and cotton in Lancashire and the world," Economic History Review, Economic History Society, vol. 63(3), pages 569-590, August.
    7. Taylor, Alan M, 2001. "Potential Pitfalls for the Purchasing-Power-Parity Puzzle? Sampling and Specification Biases in Mean-Reversion Tests of the Law of One Price," Econometrica, Econometric Society, vol. 69(2), pages 473-498, March.
    8. Parnell, Martin F., 1994. "The German Tradition of Organized Capitalism: Self-Government in the Coal Industry," OUP Catalogue, Oxford University Press, number 9780198277613, November.
    9. Federico, Giovanni & Schulze, Max-Stephan & Volckart, Oliver, 2021. "European Goods Market Integration in the Very Long Run: From the Black Death to the First World War," The Journal of Economic History, Cambridge University Press, vol. 81(1), pages 276-308, March.
    10. Lew, Byron & Cater, Bruce, 2006. "The telegraph, co-ordination of tramp shipping, and growth in world trade, 1870–1910," European Review of Economic History, Cambridge University Press, vol. 10(2), pages 147-173, August.
    11. O'Rourke, Kevin H. & Williamson, Jeffrey G., 2004. "Once more: When did globalisation begin?," European Review of Economic History, Cambridge University Press, vol. 8(1), pages 109-117, April.
    12. Uebele, Martin, 2011. "National and international market integration in the 19th century: Evidence from comovement," Explorations in Economic History, Elsevier, vol. 48(2), pages 226-242, April.
    13. Federico, Giovanni, 2011. "When did European markets integrate?," European Review of Economic History, Cambridge University Press, vol. 15(1), pages 93-126, April.
    14. Broadberry,Stephen & O'Rourke,Kevin H., 2010. "The Cambridge Economic History of Modern Europe," Cambridge Books, Cambridge University Press, number 9780521708395.
    15. Brunt, Liam & Cannon, Edmund, 2015. "Variations in the price and quality of English grain, 1750–1914: Quantitative evidence and empirical implications," Explorations in Economic History, Elsevier, vol. 58(C), pages 74-92.
    16. Elaine S. Tan, 2009. "Market structure and the coal cartel in early nineteenth‐century England1," Economic History Review, Economic History Society, vol. 62(2), pages 350-365, May.
    17. John E. Murray & Javier Silvestre, 2015. "Small-scale technologies and European coal mine safety, 1850–1900," Economic History Review, Economic History Society, vol. 68(3), pages 887-910, August.
    18. Macgregor, David Hutchinson, 1906. "Industrial Combination," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number macgregor1906.
    19. Martin Uebele & Daniel Gallardo-Albarr�n, 2015. "Paving the way to modernity: Prussian roads and grain market integration in Westphalia, 1821-1855," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 63(1), pages 69-92, March.
    20. Claude Diebolt & Michael Haupert, 2018. "Cliometrics," Working Papers of BETA 2018-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    21. Federico, Giovanni & Tena, Antonio, 1998. "Was Italy a protectionist country?," European Review of Economic History, Cambridge University Press, vol. 2(1), pages 73-97, April.
    22. Chilosi, David & Murphy, Tommy E. & Studer, Roman & Tunçer, A. Coşkun, 2013. "Europe's many integrations: Geography and grain markets, 1620–1913," Explorations in Economic History, Elsevier, vol. 50(1), pages 46-68.
    23. Bardini, Carlo, 1997. "Without Coal in the Age of Steam: A Factor-Endowment Explanation of the Italian Industrial Lag Before World War I," The Journal of Economic History, Cambridge University Press, vol. 57(3), pages 633-653, September.
    24. Panza, Laura, 2013. "Globalization and the Near East: A Study of Cotton Market Integration in Egypt and Western Anatolia," The Journal of Economic History, Cambridge University Press, vol. 73(3), pages 847-872, September.
    25. Claude Diebolt & Michael Haupert (ed.), 2019. "Handbook of Cliometrics," Springer Books, Springer, edition 2, number 978-3-030-00181-0, January.
    26. Giovanni Federico, 2012. "How much do we know about market integration in Europe?," Economic History Review, Economic History Society, vol. 65(2), pages 470-497, May.
    27. Andersson, Fredrik N.G. & Ljungberg, Jonas, 2015. "Grain Market Integration in the Baltic Sea Region in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 75(3), pages 749-790, September.
    28. Hein A. M. Klemann & Joep Schenk, 2013. "Competition in the Rhine delta: waterways, railways and ports, 1870–1913," Economic History Review, Economic History Society, vol. 66(3), pages 826-847, August.
    29. Fremdling, Rainer, 1995. "Anglo-German Rivalry on Coal Markets in France, the Netherlands and Germany, 1850-1913," GGDC Research Memorandum 199521, Groningen Growth and Development Centre, University of Groningen.
    30. Matthew Slaughter, 2001. "Does trade liberalization converge factor prices? Evidence from the antebellum transportation revolution," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(3), pages 339-362.
    31. Allen,Robert C., 2009. "The British Industrial Revolution in Global Perspective," Cambridge Books, Cambridge University Press, number 9780521868273.
    32. Victoria N. Bateman, 2011. "The evolution of markets in early modern Europe, 1350–1800: a study of wheat prices," Economic History Review, Economic History Society, vol. 64(2), pages 447-471, May.
    33. Ronald Findlay & Kevin H. O'Rourke, 2007. "Introduction to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton University Press.
    34. Peters, Lon L., 1989. "Managing Competition in German Coal, 1893–1913," The Journal of Economic History, Cambridge University Press, vol. 49(2), pages 419-433, June.
    35. Broadberry,Stephen & O'Rourke,Kevin H. (ed.), 2010. "The Cambridge Economic History of Modern Europe 2 Volume Hardback Set," Cambridge Books, Cambridge University Press, number 9780521199179.
    36. Mohammed, Saif I. Shah & Williamson, Jeffrey G., 2004. "Freight rates and productivity gains in British tramp shipping 1869-1950," Explorations in Economic History, Elsevier, vol. 41(2), pages 172-203, April.
    37. Wrigley,E. A., 2010. "Energy and the English Industrial Revolution," Cambridge Books, Cambridge University Press, number 9780521766937.
    38. Sharp, Paul & Weisdorf, Jacob, 2013. "Globalization revisited: Market integration and the wheat trade between North America and Britain from the eighteenth century," Explorations in Economic History, Elsevier, vol. 50(1), pages 88-98.
    39. Rafael Dobado-González & Alfredo García-Hiernaux & David E. Guerrero, 2015. "West versus Far East: early globalization and the great divergence," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 9(2), pages 235-264, May.
    40. Wolf, Nikolaus, 2009. "Was Germany Ever United? Evidence from Intra- and International Trade, 1885–1933," The Journal of Economic History, Cambridge University Press, vol. 69(3), pages 846-881, September.
    41. Claude Diebolt & Michael Haupert (ed.), 2016. "Handbook of Cliometrics," Springer Books, Springer, edition 1, number 978-3-642-40406-1, January.
    42. Wrigley,E. A., 2010. "Energy and the English Industrial Revolution," Cambridge Books, Cambridge University Press, number 9780521131858.
    43. Astrid Kander & Paolo Malanima & Paul Warde, 2013. "Power to the People: Energy in Europe over the Last Five Centuries," Economics Books, Princeton University Press, edition 1, number 10138.
    44. Burhop, Carsten & Lübbers, Thorsten, 2009. "Cartels, Managerial Incentives, and Productive Efficiency in German Coal Mining, 1881–1913," The Journal of Economic History, Cambridge University Press, vol. 69(2), pages 500-527, June.
    45. Bittner, Thomas, 2005. "An event study of the Rhenish-Westphalian Coal Syndicate," European Review of Economic History, Cambridge University Press, vol. 9(3), pages 337-364, December.
    46. Brunt, Liam & Cannon, Edmund, 2014. "Measuring integration in the English wheat market, 1770–1820: New methods, new answers," Explorations in Economic History, Elsevier, vol. 52(C), pages 111-130.
    47. Shiue, Carol H., 2005. "From political fragmentation towards a customs union: Border effects of the German Zollverein, 1815 to 1855," European Review of Economic History, Cambridge University Press, vol. 9(2), pages 129-162, August.
    48. Broadberry,Stephen & O'Rourke,Kevin H. (ed.), 2010. "The Cambridge Economic History of Modern Europe 2 Volume Paperback Set," Cambridge Books, Cambridge University Press, number 9780521128247, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kouli, Yaman & König, Jörg, 2021. "Measuring European economic integration 1880 - 1913: A new approach," DICE Discussion Papers 374, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    2. Javier Silvestre, 2021. "Productivity, Mortality, and Technology in European and US Coal Mining, 1800-1913," Working Papers 0205, European Historical Economics Society (EHES).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cassidy, Daniel & Hanley, Nick, 2020. "Regional market integration and the emergence of a Scottish national grain market," eabh Papers 20-05, The European Association for Banking and Financial History (EABH).
    2. Chilosi, David & Federico, Giovanni, 2015. "Early globalizations: The integration of Asia in the world economy, 1800–1938," Explorations in Economic History, Elsevier, vol. 57(C), pages 1-18.
    3. Federico, Giovanni & Schulze, Max-Stephan & Volckart, Oliver, 2021. "European Goods Market Integration in the Very Long Run: From the Black Death to the First World War," The Journal of Economic History, Cambridge University Press, vol. 81(1), pages 276-308, March.
    4. Chilosi, David & Murphy, Tommy E. & Studer, Roman & Tunçer, A. Coşkun, 2013. "Europe's many integrations: Geography and grain markets, 1620–1913," Explorations in Economic History, Elsevier, vol. 50(1), pages 46-68.
    5. Kouli, Yaman & König, Jörg, 2021. "Measuring European economic integration 1880 - 1913: A new approach," DICE Discussion Papers 374, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    6. Alexander Pütz & Pierre L. Siklos & Christoph Sulewski, 2019. "“Who pays the piper calls the tune” – Networks and transaction costs in commodity markets," CQE Working Papers 8819, Center for Quantitative Economics (CQE), University of Muenster.
    7. Brunt, Liam & Cannon, Edmund, 2013. "Integration in the English wheat market 1770-1820," Discussion Paper Series in Economics 12/2013, Norwegian School of Economics, Department of Economics.
    8. Sofia Teives Henriques & Paul Sharp, 2016. "The Danish agricultural revolution in an energy perspective: a case of development with few domestic energy sources," Economic History Review, Economic History Society, vol. 69(3), pages 844-869, August.
    9. Daniel Cassidy & Nick Hanley, 2022. "Union, border effects, and market integration in Britain," Working Papers 0228, European Historical Economics Society (EHES).
    10. Li, Zhuo & Panza, Laura & Song, Yong, 2019. "The evolution of ottoman–European market linkages, 1469–1914: Evidence from dynamic factor models," Explorations in Economic History, Elsevier, vol. 71(C), pages 112-134.
    11. Nielsen, Hana, 2021. "Coal and Sugar: The Black and White Gold of Czech Industrialization (1841-1863)," Lund Papers in Economic History 229, Lund University, Department of Economic History.
    12. Sofia Teives Henriques & Paul Sharp, 2021. "Without coal in the age of steam and dams in the age of electricity: an explanation for the failure of Portugal to industrialize before the Second World War," European Review of Economic History, Oxford University Press, vol. 25(1), pages 85-105.
    13. C. Knick Harley, 2013. "British and European Industrialization," Oxford Economic and Social History Working Papers _111, University of Oxford, Department of Economics.
    14. Morgan Kelly & Joel Mokyr & Cormac Ó Gráda, 2020. "The Mechanics of the Industrial Revolution," Working Papers 202016, School of Economics, University College Dublin.
    15. Ebeling, Francisco, 2022. "Can fossil fuel endowments steer economic development? Evidence from the linkages approach," Resources Policy, Elsevier, vol. 78(C).
    16. Baffigi, Alberto & Bontempi, Maria Elena & Felice, Emanuele & Golinelli, Roberto, 2015. "The changing relationship between inflation and the economic cycle in Italy: 1861–2012," Explorations in Economic History, Elsevier, vol. 56(C), pages 53-70.
    17. Sofia Teives Henriques & Paul Sharp & Xanthi Tsoukli & Christian Vedel, 2021. "Resilience, Adaptability and Transformability:Danish Butter Factories in the Face of Coal Shortages," CAGE Online Working Paper Series 598, Competitive Advantage in the Global Economy (CAGE).
    18. Keith Sugden & Sebastian A.J. Keibek & Leigh Shaw-Taylor, "undated". "Adam Smith revisited: coal and the location of the woollen manufacture in England before mechanization, c. 1500-1820," Working Papers 33, Department of Economic and Social History at the University of Cambridge.
    19. Daniel Bernhofen & Markus Eberhardt & Jianan Li & Stephen Morgan, 2017. "The evolution of markets in China and Western Europe on the eve of industrialisation," Discussion Papers 2017-12, University of Nottingham, GEP.
    20. Kristin Ranestad & Paul Richard Sharp, 2020. "Success through failure? Four Centuries of Searching for Danish Coal," Working Papers 0183, European Historical Economics Society (EHES).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ehsrev:v:73:y:2020:i:3:p:668-702. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ehsukea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/ehsukea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.