IDEAS home Printed from https://ideas.repec.org/a/bla/ehsrev/v73y2020i4p964-990.html

The rise of coffee in the Brazilian south‐east: tariffs and foreign market potential, 1827–40

Author

Listed:
  • Christopher David Absell

Abstract

During the period spanning independence in 1822 to mid‐century, Brazil's south‐east shifted from specializing in the export of cane sugar to coffee. This article explores the mechanism underlying this shift by exploiting a wealth of new monthly data on the Brazilian and international coffee and cane sugar markets during the period 1827–40. It argues that the timing of the coffee boom was driven by a rapid increase in foreign market potential associated with the abolition of the tariff on coffee in the US. It estimates that American tariff reform served to increase coffee exports and African slave imports by around one‐fifth. American firms, with indirect links to the slave trade, rapidly became major players in the export market in Rio de Janeiro, while non‐American firms, traditionally specialized in continental European destinations, turned their sights on the American market.

Suggested Citation

  • Christopher David Absell, 2020. "The rise of coffee in the Brazilian south‐east: tariffs and foreign market potential, 1827–40," Economic History Review, Economic History Society, vol. 73(4), pages 964-990, November.
  • Handle: RePEc:bla:ehsrev:v:73:y:2020:i:4:p:964-990
    DOI: 10.1111/ehr.12966
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ehr.12966
    Download Restriction: no

    File URL: https://libkey.io/10.1111/ehr.12966?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. William R. Summerhill, 1998. "Market intervention in a backward economy: railway subsidy in Brazil, 1854-1913," Economic History Review, Economic History Society, vol. 51(3), pages 542-568, August.
    2. Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, vol. 84(2), pages 755-776, November.
    3. Schmitz, Mark D., 1977. "Economies of Scale and Farm Size in the Antebellum Sugar Sector," The Journal of Economic History, Cambridge University Press, vol. 37(4), pages 959-980, December.
    4. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-959, December.
    5. Pinilla, Vicente & Ayuda, María-Isabel, 2010. "Taking advantage of globalization? Spain and the building of the international market in Mediterranean horticultural products, 1850–1935," European Review of Economic History, Cambridge University Press, vol. 14(2), pages 239-274, August.
    6. Miriam Bruhn & Francisco A. Gallego, 2012. "Good, Bad, and Ugly Colonial Activities: Do They Matter for Economic Development?," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 433-461, May.
    7. Rousseau, Peter L., 2002. "Jacksonian Monetary Policy, Specie Flows, And The Panic Of 1837," The Journal of Economic History, Cambridge University Press, vol. 62(2), pages 457-488, June.
    8. John Romalis, 2004. "Factor Proportions and the Structure of Commodity Trade," American Economic Review, American Economic Association, vol. 94(1), pages 67-97, March.
    9. Curtin, Philip D., 1954. "The British Sugar Duties and West Indian Prosperity," The Journal of Economic History, Cambridge University Press, vol. 14(2), pages 157-164, April.
    10. Giovanni Federico & Antonio Tena‐Junguito, 2017. "Lewis revisited: tropical polities competing on the world market, 1830–1938," Economic History Review, Economic History Society, vol. 70(4), pages 1244-1267, November.
    11. Absell, Christopher David & Tena Junguito, Antonio, 2015. "Brazilian export growth and divergence in the tropics during the nineteenth century," IFCS - Working Papers in Economic History.WH wp15-03, Universidad Carlos III de Madrid. Instituto Figuerola.
    12. Musacchio, Aldo & Fritscher, André Martínez & Viarengo, Martina, 2014. "Colonial Institutions, Trade Shocks, and the Diffusion of Elementary Education in Brazil, 1889–1930," The Journal of Economic History, Cambridge University Press, vol. 74(3), pages 730-766, September.
    13. Ridings,Eugene, 1994. "Business Interest Groups in Nineteenth-Century Brazil," Cambridge Books, Cambridge University Press, number 9780521454858, January.
    14. Christopher F Baum, 2006. "An Introduction to Modern Econometrics using Stata," Stata Press books, StataCorp LLC, number imeus, March.
    15. Denslow, David A., 1975. "Sugar Production in Northeastern Brazil and Cuba, 1858–1908," The Journal of Economic History, Cambridge University Press, vol. 35(1), pages 260-263, March.
    16. Giovanni Federico & Antonio Tena-Junguito, 2018. "American divergence: Lost decades and Emancipation collapse in Latin America and the Caribbean 1820–1870," European Review of Economic History, European Historical Economics Society, vol. 22(2), pages 185-209.
    17. Keith Head & Thierry Mayer, 2004. "Market Potential and the Location of Japanese Investment in the European Union," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 959-972, November.
    18. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
    19. Jacks, David S. & Novy, Dennis, 2018. "Market Potential and Global Growth over the Long Twentieth Century," Journal of International Economics, Elsevier, vol. 114(C), pages 221-237.
    20. Stephen Redding & Anthony Venables, 2004. "Geography and Export Performance: External Market Access and Internal Supply Capacity," NBER Chapters, in: Challenges to Globalization: Analyzing the Economics, pages 95-127, National Bureau of Economic Research, Inc.
    21. Nathaniel H. Leff, 1972. "Economic Development and Regional Inequality: Origins of the Brazilian Case," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(2), pages 243-262.
    22. Davis, Donald R. & Weinstein, David E., 2003. "Market access, economic geography and comparative advantage: an empirical test," Journal of International Economics, Elsevier, vol. 59(1), pages 1-23, January.
    23. Santos Silva, J.M.C. & Tenreyro, Silvana, 2011. "Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator," Economics Letters, Elsevier, vol. 112(2), pages 220-222, August.
    24. Liu, Dan & Meissner, Christopher M., 2015. "Market potential and the rise of US productivity leadership," Journal of International Economics, Elsevier, vol. 96(1), pages 72-87.
    25. Eltis, David, 1987. "Economic Growth and the Ending of the Transatlantic Slave Trade," OUP Catalogue, Oxford University Press, number 9780195041354.
    26. Mauricio Cárdenas & Denisse Yanovich, 1997. "Café y desarrollo económico: un análisis departamental," Coyuntura Social 13125, Fedesarrollo.
    27. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    28. Markus Lampe & Paul Sharp, 2015. "How the Danes discovered Britain: the international integration of the Danish dairy industry before 1880," European Review of Economic History, European Historical Economics Society, vol. 19(4), pages 432-453.
    29. Giovanni Federico & Antonio Tena-Junguito, 2017. "A tale of two globalizations: gains from trade and openness 1800–2010," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(3), pages 601-626, August.
    30. Cohn,Raymond L., 2009. "Mass Migration under Sail," Cambridge Books, Cambridge University Press, number 9780521513227, January.
    31. Naritomi, Joana & Soares, Rodrigo R. & Assunção, Juliano J., 2012. "Institutional Development and Colonial Heritage within Brazil," The Journal of Economic History, Cambridge University Press, vol. 72(2), pages 393-422, May.
    32. Topik, Steven, 2004. "The world coffee market in the eighteenth and nineteenth centuries, from colonial to national regimes," Economic History Working Papers 22489, London School of Economics and Political Science, Department of Economic History.
    33. Ariel Linden, 2015. "Conducting interrupted time-series analysis for single- and multiple-group comparisons," Stata Journal, StataCorp LLC, vol. 15(2), pages 480-500, June.
    34. Ariel Linden, 2022. "Erratum: A comprehensive set of postestimation measures to enrich interrupted time-series analysis," Stata Journal, StataCorp LLC, vol. 22(1), pages 231-233, March.
    35. Leonardo Monasterio, 2010. "Brazilian spatial dynamics in the long term (1872–2000): “path dependency” or “reversal of fortune”?," Journal of Geographical Systems, Springer, vol. 12(1), pages 51-67, March.
    36. Absell, Christopher David & Tena-Junguito, Antonio, 2018. "The Reconstruction Of Brazil’S Foreign Trade Series, 1821-1913," Revista de Historia Económica / Journal of Iberian and Latin American Economic History, Cambridge University Press, vol. 36(1), pages 87-115, March.
    Full references (including those not matched with items on IDEAS)

    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. Christopher David Absell, 2023. "British slave emancipation and the demand for Brazilian sugar," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 17(1), pages 125-154, January.
    2. Nunn, Nathan & Trefler, Daniel, 2014. "Domestic Institutions as a Source of Comparative Advantage," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 263-315, Elsevier.
    3. Evan Wigton-Jones, 2020. "Legacies of inequality: the case of Brazil," Journal of Economic Growth, Springer, vol. 25(4), pages 455-501, December.
    4. Luciano Nakabashi & Ana Elisa Pereira, 2023. "Factors of production, productivity, institutions, and development: Evidence from Brazil," Review of Development Economics, Wiley Blackwell, vol. 27(2), pages 1034-1055, May.
    5. Yo-Yi Huang & Deng-Shing Huang & Ching-lung Tsay, 2016. "Trade Creation, Home-Market Effects under Regional Economic Integration," IEAS Working Paper : academic research 16-A015, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    6. Christopher David Absell, 2023. "British slave emancipation and the demand for Brazilian sugar," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 17(1), pages 125-154, January.
    7. Fally, Thibault, 2015. "Structural gravity and fixed effects," Journal of International Economics, Elsevier, vol. 97(1), pages 76-85.
    8. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    9. Kim, Ho Yeon, 2012. "Shrinking population and the urban hierarchy," IDE Discussion Papers 360, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Ahlfeldt, Gabriel M. & Feddersen, Arne, 2010. "From Periphery to Core: Economic Adjustments to High Speed Rail," MPRA Paper 25106, University Library of Munich, Germany.
    11. Anne-Célia Disdier & Lionel Fontagné & Olivier Cadot, 2015. "North-South Standards Harmonization and International Trade," The World Bank Economic Review, World Bank, vol. 29(2), pages 327-352.
    12. Delgadillo Chavarria, Carlos Bruno, 2019. "El Efecto de la Mediterraneidad sobre el Flujo Comercial Internacional: Evidencia Empírica Internacional y para América del Sur (1990-2016) [The Effect of Landlocked Country Status on International," MPRA Paper 96093, University Library of Munich, Germany, revised 10 Sep 2019.
    13. Holger Breinlich & Elsa Leromain & Dennis Novy & Thomas Sampson, 2021. "Import liberalization as export destruction? Evidence from the United States," CEP Discussion Papers dp1779, Centre for Economic Performance, LSE.
    14. Larch, Mario & Wanner, Joschka, 2017. "Carbon tariffs: An analysis of the trade, welfare, and emission effects," Journal of International Economics, Elsevier, vol. 109(C), pages 195-213.
    15. Gabrielle Gambuli, 2023. "Navigating the Geography of Regional Disparities: Market Access and the Core-Periphery Divide," Thema Working Papers 2023-05, THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS.
    16. Breinlich, Holger & Cuñat, Alejandro, 2013. "Geography, non-homotheticity, and industrialization: A quantitative analysis," Journal of Development Economics, Elsevier, vol. 103(C), pages 133-153.
    17. Irarrázaval, Andrés, 2020. "The fiscal origins of comparative inequality levels: an empirical and historical investigation," LSE Research Online Documents on Economics 107491, London School of Economics and Political Science, LSE Library.
    18. Ho Yeon KIM & Petra de Jong & Jan Rouwendal & Aleid Brouwer, 2012. "Shrinking population and the urban hierarchy [Housing preferences and attribute importance among Dutch older adults: a conjoint choice experiment]," ERSA conference papers ersa12p350, European Regional Science Association.
    19. Casey, Gregory & Klemp, Marc, 2016. "Instrumental Variables in the Long Run," MPRA Paper 68696, University Library of Munich, Germany.
    20. Hanson, Gordon H. & Lind, Nelson & Muendler, Marc-Andreas, 2015. "The Dynamics of Comparative Advantage," CAGE Online Working Paper Series 252, Competitive Advantage in the Global Economy (CAGE).

    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:4:p:964-990. See general information about how to correct material in RePEc.

    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. RePEc uses bibliographic data supplied by the respective publishers.