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A tale of two globalizations: gains from trade and openness 1800–2010

Author

Listed:
  • Giovanni Federico

    () (Università di Pisa
    CEPR)

  • Antonio Tena-Junguito

    () (Universidad Carlos III de Madrid)

Abstract

Abstract This paper compares the waves of globalization before the outbreak of the Great Recession in 2007 with its alleged historical antecedent before the outbreak of World War One. We describe trends in trade and openness, investigate the proximate causes of changes in openness and estimate the gains from trade from the early nineteenth century onwards. Our results suggest that the conventional wisdom has to be revised. The first wave of globalization started around 1820 and culminated around 1870. In the next century, trade continued to grow, with the exception of the Great Depression, but openness and gains fluctuated widely. They resumed a clear upward trend from the early 1970s. By 2007, the world was more open than a century earlier and its inhabitants gained from trade substantially more than their ancestors did.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:weltar:v:153:y:2017:i:3:d:10.1007_s10290-017-0279-z
    DOI: 10.1007/s10290-017-0279-z
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    Cited by:

    1. Giovanni Federico & Paul Sharp & Antonio Tena-Junguito, 2017. "Openness and growth in a historical perspective: a VECM approach," Working Papers 0118, European Historical Economics Society (EHES).
    2. Carlo Ciccarelli & Alberto Dalmazzo & Daniela Vuri, 2018. "Home Sweet Home: the Effect of Sugar Protectionism on Emigration in Italy, 1876-1913," CEIS Research Paper 437, Tor Vergata University, CEIS, revised 08 Jun 2018.
    3. repec:ceh:journl:y:2017:v:2:p:115-128 is not listed on IDEAS

    More about this item

    Keywords

    Globalization; Trade openness; Gains of trade; Nineteenth and twentieth century;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

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