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Does Bilateralism Promote Trade? Nineteenth Century Liberalization Revisited

Author

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  • Olivier Accominotti

    (WWSPIL - Woodrow Wilson School of Public and International Affairs - Princeton University)

  • Marc Flandreau

    (Centre for Finance and Development - GRADUATE INSTITUTE OF INTERNATIONAL AND DEVELOPMENT STUDIES)

Abstract

Textbook accounts of the Anglo-French trade agreement of 1860 argue that it heralded the beginning of a liberal trading order. This alleged success has much interest from a policy point of view: unlike modern GATT/WTO multilateral agreements, it rested on bilateral negotiations. But, in reality, how great were its effects? With the help of new data on international trade we provide empirical evidence. We find that the Anglo-French treaty and subsequent network of Most Favoured Nation (MFN) trade agreements coincided with the end of a period of unilateral liberalization across the world, and that it did not contribute to expand trade at all. This is contrary to a deeply rooted belief among economists and economic historians. We conclude that, contrary to a popular wisdom, bilateralism did not promote trade in the 19th century.

Suggested Citation

  • Olivier Accominotti & Marc Flandreau, 2006. "Does Bilateralism Promote Trade? Nineteenth Century Liberalization Revisited," Working Papers hal-01065617, HAL.
    • Handle: RePEc:hal:wpaper:hal-01065617
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-01065617
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    References listed on IDEAS

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    Cited by:

    1. Kevin H. O'Rourke, Leandro Prados de la Escosura and Guilllaume Daudin, 2008. "Trade and Empire, 1700-1870," The Institute for International Integration Studies Discussion Paper Series iiisdp249, IIIS.
    2. 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.
    3. Jacks, David S. & Meissner, Christopher M. & Novy, Dennis, 2011. "Trade booms, trade busts, and trade costs," Journal of International Economics, Elsevier, vol. 83(2), pages 185-201, March.
    4. Jacks, David S. & Meissner, Christopher M. & Novy, Dennis, 2010. "Trade costs in the first wave of globalization," Explorations in Economic History, Elsevier, vol. 47(2), pages 127-141, April.
    5. Stéphane BECUWE (GREThA, CNRS, UMR 5113) & Bertrand BLANCHETON (GREThA, CNRS, UMR 5113), 2012. "The dispersion of customs tariffs in France between 1850 and 1913: discrimination in trade policy," Cahiers du GREThA 2012-13, Groupe de Recherche en Economie Théorique et Appliquée.
    6. repec:spo:wpecon:info:hdl:2441/6149 is not listed on IDEAS
    7. Kris James Mitchener & Marc Weidenmier, 2008. "Trade and Empire," NBER Working Papers 13765, National Bureau of Economic Research, Inc.
    8. Michel Fouquin & Jules Hugot, 2016. "Back to the Future: International Trade Costs and the Two Globalizations," VNIVERSITAS ECONÓMICA 015130, UNIVERSIDAD JAVERIANA - BOGOTÁ.
    9. Stéphane BECUWE (GREThA, CNRS, UMR 5113) & Bertrand BLANCHETON (GREThA, CNRS, UMR 5113) & Léo CHARLES (GREThA, CNRS, UMR 5113), 2012. "The decline of French trade power during the first globalization (1850-1913)," Cahiers du GREThA 2012-22, Groupe de Recherche en Economie Théorique et Appliquée.
    10. Gerhard Kling & Joerg Baten & Kirsten Labuske, 2011. "FDI of German Companies During Globalization and Deglobalization," Open Economies Review, Springer, vol. 22(2), pages 247-270, April.

    More about this item

    Keywords

    Trade policy; Bilateralism;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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