IDEAS home Printed from https://ideas.repec.org/a/cup/jechis/v79y2019i03p826-861_00.html
   My bibliography  Save this article

Responding to the First Era of Globalization: Canadian Trade Policy, 1870–1913

Author

Listed:
  • Alexander, Patrick D.
  • Keay, Ian

Abstract

In this article we document Canada’s trade policy response to late nineteenth and early twentieth century globalization by linking newly digitized annual productspecific data on the value of Canadian imports and duties paid from 1870–1913, to establishment-specific production and location information drawn from the manuscripts of the 1871 industrial census. We find evidence of a highly selective move towards protectionism following the adoption of the National Policy in 1879. Changes in the Canadian tariff schedule narrowly targeted manufactured import products that had close substitutes produced by relatively large, urban, politically influential domestic manufacturers.

Suggested Citation

  • Alexander, Patrick D. & Keay, Ian, 2019. "Responding to the First Era of Globalization: Canadian Trade Policy, 1870–1913," The Journal of Economic History, Cambridge University Press, vol. 79(3), pages 826-861, September.
  • Handle: RePEc:cup:jechis:v:79:y:2019:i:03:p:826-861_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0022050719000317/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. Markus Lampe & Paul Sharp, 2013. "Tariffs and income: a time series analysis for 24 countries," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 7(3), pages 207-235, September.
    3. Eugene Beaulieu & Jevan Cherniwchan, 2014. "Tariff Structure, Trade Expansion, and Canadian Protectionism, 1870-1910," Canadian Journal of Economics, Canadian Economics Association, vol. 47(1), pages 144-172, February.
    4. Tena-Junguito, Antonio & Lampe, Markus & Fernandes, Felipe Tâmega, 2012. "How Much Trade Liberalization Was There in the World Before and After Cobden-Chevalier?," The Journal of Economic History, Cambridge University Press, vol. 72(03), pages 708-740, September.
    5. Hiau Looi Kee & Alessandro Nicita & Marcelo Olarreaga, 2008. "Import Demand Elasticities and Trade Distortions," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 666-682, November.
    6. Huberman, Michael & Meissner, Christopher M. & Oosterlinck, Kim, 2017. "Technology and Geography in the Second Industrial Revolution: New Evidence from the Margins of Trade," The Journal of Economic History, Cambridge University Press, vol. 77(01), pages 39-89, March.
    7. Trefler, Daniel, 1993. "Trade Liberalization and the Theory of Endogenous Protection: An Econometric Study of U.S. Import Policy," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 138-160, February.
    8. Lehmann, Sibylle H., 2010. "The German Elections in the 1870s: Why Germany Turned from Liberalism to Protectionism," The Journal of Economic History, Cambridge University Press, vol. 70(1), pages 146-178, March.
    9. Antoni Estevadeordal & Brian Frantz & Alan M. Taylor, 2003. "The Rise and Fall of World Trade, 1870–1939," The Quarterly Journal of Economics, Oxford University Press, vol. 118(2), pages 359-407.
    10. Markus Lampe, 2011. "Explaining nineteenth‐century bilateralism: economic and political determinants of the Cobden–Chevalier network," Economic History Review, Economic History Society, vol. 64(2), pages 644-668, May.
    11. Taylor, Alan M. & Williamson, Jeffrey G., 1997. "Convergence in the age of mass migration," European Review of Economic History, Cambridge University Press, vol. 1(01), pages 27-63, April.
    12. Giovanni Maggi & Pinelopi Koujianou Goldberg, 1999. "Protection for Sale: An Empirical Investigation," American Economic Review, American Economic Association, vol. 89(5), pages 1135-1155, December.
    13. Concepción Betrán & Michael Huberman, 2016. "International competition in the first wave of globalization: new evidence on the margins of trade," Economic History Review, Economic History Society, vol. 69(1), pages 258-287, February.
    14. W. M. Corden, 1966. "The Structure of a Tariff System and the Effective Protective Rate," Journal of Political Economy, University of Chicago Press, vol. 74, pages 221-221.
    15. Ronald S. Saunders, 1980. "The Political Economy of Effective Tariff Protection in Canada's Manufacturing Sector," Canadian Journal of Economics, Canadian Economics Association, vol. 13(2), pages 340-348, May.
    16. North, Douglass, 1958. "Ocean Freight Rates and Economic Development 1730-1913," The Journal of Economic History, Cambridge University Press, vol. 18(4), pages 537-555, December.
    17. Goodrich, Carter, 1970. "Internal Improvements Reconsidered," The Journal of Economic History, Cambridge University Press, vol. 30(2), pages 289-311, June.
    18. repec:eee:exehis:v:68:y:2018:i:c:p:1-15 is not listed on IDEAS
    19. Horstmann, Ignatius J. & Markusen, James R., 1986. "Up the average cost curve: Inefficient entry and the new protectionism," Journal of International Economics, Elsevier, vol. 20(3-4), pages 225-247, May.
    20. Kishore Gawande & Usree Bandyopadhyay, 2000. "Is Protection for Sale? Evidence on the Grossman-Helpman Theory of Endogenous Protection," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 139-152, February.
    21. Richard E. Caves, 1976. "Economic Models of Political Choice: Canada's Tariff Structure," Canadian Journal of Economics, Canadian Economics Association, vol. 9(2), pages 278-300, May.
    22. Marc J. Melitz & Daniel Trefler, 2012. "Gains from Trade When Firms Matter," Journal of Economic Perspectives, American Economic Association, vol. 26(2), pages 91-118, Spring.
    23. Harris, Richard, 1984. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," American Economic Review, American Economic Association, vol. 74(5), pages 1016-1032, December.
    24. Douglas A. Irwin, 2010. "Trade Restrictiveness and Deadweight Losses from US Tariffs," American Economic Journal: Economic Policy, American Economic Association, vol. 2(3), pages 111-133, August.
    25. Sibylle H. Lehmann & Kevin H. O'Rourke, 2011. "The Structure of Protection and Growth in the Late Nineteenth Century," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 606-616, May.
    26. Inwood, Kris & Keay, Ian, 2015. "Transport Costs and Trade Volumes: Evidence from the Trans-Atlantic Iron Trade, 1870–1913," The Journal of Economic History, Cambridge University Press, vol. 75(1), pages 95-124, March.
    27. Harris, Richard & Keay, Ian & Lewis, Frank, 2015. "Protecting infant industries: Canadian manufacturing and the national policy, 1870–1913," Explorations in Economic History, Elsevier, vol. 56(C), pages 15-31.
    28. 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.
    29. Easton, Stephen T. & Gibson, William A. & Reed, Clyde G., 1988. "Tariffs and growth: The dales hypothesis," Explorations in Economic History, Elsevier, vol. 25(2), pages 147-163, April.
    30. G. K. Helleiner, 1977. "The Political Economy of Canada's Tariff Structure: An Alternative Model," Canadian Journal of Economics, Canadian Economics Association, vol. 10(2), pages 318-326, May.
    31. Kris Inwood & Ian Keay, 2013. "Trade policy and industrial development: iron and steel in a small open economy, 18701913," Canadian Journal of Economics, Canadian Economics Association, vol. 46(4), pages 1265-1294, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • F - International Economics
    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • N - Economic History
    • N71 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: Pre-1913

    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:cup:jechis:v:79:y:2019:i:03:p:826-861_00. 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: (Keith Waters). General contact details of provider: https://www.cambridge.org/jeh .

    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 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.

    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.