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Industrialisation in a small grain economy during the First Globalisation: Bulgaria c. 1870–1910

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  • Martin Ivanov
  • Michael Kopsidis

Abstract

In Bulgaria the share of secondary production in GDP remained constantly low between c. 1870–1910. To explain the country's exceptionally weak growth, we use endogenous and unified growth theory. Gerschenkron and Palairet blame a self‐sufficiency‐oriented peasant economy for rising labour and raw material costs in industry, which destroyed the competitiveness of Bulgarian manufacturing and prevented industrialisation. We refute the existence of any long‐lasting cost increases in industry after 1878. Quite the opposite was true: the expansion of Bulgaria's secondary sector was restricted by detrimental changes on the demand side, for which peasants were not responsible. Recent research claims that, around 1910, Bulgarian textile production was significantly lower than in 1870. Our study brings to light new data and information that clearly disproves this view. Until around 1910, a booming modern manufacturing sector more than replaced the country's proto‐industries’ textile outputs, which had plummeted dramatically during the early years of the newly founded Bulgarian state. However, as the rise of modern manufacturing in textile production coincided with the decline of the entire large sector of traditional manufacturing, secondary production as a whole stagnated.

Suggested Citation

  • Martin Ivanov & Michael Kopsidis, 2023. "Industrialisation in a small grain economy during the First Globalisation: Bulgaria c. 1870–1910," Economic History Review, Economic History Society, vol. 76(1), pages 169-198, February.
    • Handle: RePEc:bla:ehsrev:v:76:y:2023:i:1:p:169-198
    DOI: 10.1111/ehr.13185
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    References listed on IDEAS

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    1. Schulze, Max-Stephan, 2000. "Patterns of growth and stagnation in the late nineteenth century Habsburg economy," European Review of Economic History, Cambridge University Press, vol. 4(3), pages 311-340, December.
    2. Tilly, Richard H. & Kopsidis, Michael, 2020. "From Old Regime to Industrial State," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226725437, December.
    3. Giovanni Federico, 2005. "Introduction to Feeding the World: An Economic History of World Agriculture, 1800-2000," Introductory Chapters, in: Feeding the World: An Economic History of World Agriculture, 1800-2000, Princeton University Press.
    4. Pamuk, Sevket, 1986. "The decline and resistance of ottoman cotton textiles 1820-1913," Explorations in Economic History, Elsevier, vol. 23(2), pages 205-225, April.
    5. Michael Kopsidis, 2012. "Peasant Agriculture and Economic Growth: The Case of Southeast Europe c. 1870-1940 reinterpreted," Working Papers 0028, European Historical Economics Society (EHES).
    6. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
    7. repec:cup:jechis:v:35:y:1975:i:01:p:56-85_09 is not listed on IDEAS
    8. repec:fth:stanho:e-92-3 is not listed on IDEAS
    9. Michael Kopsidis & Martin Ivanov, 2015. "Was Gerschenkron right? Bulgarian agricultural growth during the Interwar period in light of modern development economics," Working Papers 0082, European Historical Economics Society (EHES).
    10. Holger Strulik & Jacob Weisdorf, 2008. "Population, food, and knowledge: a simple unified growth theory," Journal of Economic Growth, Springer, vol. 13(3), pages 195-216, September.
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    Cited by:

    1. Stefan Nikolić, 2025. "Spatial inequality in prices and wages within a late‐developing economy: Serbia, 1863–1910," Economic History Review, Economic History Society, vol. 78(1), pages 207-234, February.
    2. Nikolić, Stefan & Novokmet, Filip & Larysz, Piotr Paweł, 2024. "Income inequality in Eastern Europe: Bulgaria and Czechoslovakia in the twentieth century," Explorations in Economic History, Elsevier, vol. 94(C).

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