IDEAS home Printed from https://ideas.repec.org/p/hit/hitcei/2018-18.html
   My bibliography  Save this paper

Japan and the Asian Divergence: Market Integration, Climate Anomalies and Famines during the 18th and 19th Centuries

Author

Listed:
  • Bassino, Jean-Pascal
  • van der Eng, Pierre

Abstract

This paper asks whether better integration of rice markets in Japan during the 19th and 20th centuries compared to China and India explains the ‘Little Divergence’ in Asia and Japan’s role in the ‘Great Divergence’. It analyses rice prices for 13 markets across Japan during 1720-1857 and finds that Japan had relatively well-integrated rice markets, particularly western Japan. In eastern Japan market integration was partially impeded by distance to Osaka, which was the core market, and the greater ecological vulnerability of rice in northeast Japan to lower temperatures during the ‘little ice age’ that lasted until the mid-19th century. Relatively well-integrated markets did not prevent major famines during 1732-1733, 1783-1786, and 1833-1838, because stocks and supplies were insufficient to withstand the consequences of sequences of crop failures. Better integration of rice markets is indicative of higher allocative efficiency of markets in Japan which is a likely reason that ‘shrinking’ episodes caused fewer setbacks in long-term economic growth compared to in China and India.

Suggested Citation

  • Bassino, Jean-Pascal & van der Eng, Pierre, 2019. "Japan and the Asian Divergence: Market Integration, Climate Anomalies and Famines during the 18th and 19th Centuries," CEI Working Paper Series 2018-18, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:hitcei:2018-18
    Note: This version: 2019/03/01
    as

    Download full text from publisher

    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/30118/1/wp2018-18.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ejrnaes, Mette & Persson, Karl Gunnar, 2000. "Market Integration and Transport Costs in France 1825-1903: A Threshold Error Correction Approach to the Law of One Price," Explorations in Economic History, Elsevier, vol. 37(2), pages 149-173, April.
    2. Ke Yao & Xiao-Ping Zheng, 2016. "A Comparison of Market Integration in Nineteenth-Century China and Japan," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 56(3), pages 246-271, November.
    3. Okazaki, Tetsuji, 2005. "The role of the merchant coalition in pre-modern Japanese economic development: an historical institutional analysis," Explorations in Economic History, Elsevier, vol. 42(2), pages 184-201, April.
    4. Studer, Roman, 2008. "India and the Great Divergence: Assessing the Efficiency of Grain Markets in Eighteenth- and Nineteenth-Century India," The Journal of Economic History, Cambridge University Press, vol. 68(02), pages 393-437, June.
    5. repec:bla:ehsrev:v:72:y:2019:i:1:p:286-316 is not listed on IDEAS
    6. Chilosi, David & Federico, Giovanni, 2015. "Early globalizations: The integration of Asia in the world economy, 1800–1938," Explorations in Economic History, Elsevier, vol. 57(C), pages 1-18.
    7. Tuan-Hwee Sng & Chiaki Moriguchi, 2014. "Asia’s little divergence: state capacity in China and Japan before 1850," Journal of Economic Growth, Springer, vol. 19(4), pages 439-470, December.
    8. Amartya Sen, 1981. "Ingredients of Famine Analysis: Availability and Entitlements," The Quarterly Journal of Economics, Oxford University Press, vol. 96(3), pages 433-464.
    9. McAlpin, Michelle Burge, 1979. "Dearth, Famine, and Risk: The Changing Impact of Crop Failures in Western India, 1870–1920," The Journal of Economic History, Cambridge University Press, vol. 39(01), pages 143-157, March.
    10. Allen, Robert C., 2001. "The Great Divergence in European Wages and Prices from the Middle Ages to the First World War," Explorations in Economic History, Elsevier, vol. 38(4), pages 411-447, October.
    11. Shigeyuki Hamori & Naoko Hamori & David A. Anderson, 2001. "An Empirical Analysis of the Efficiency of the Osaka Rice Market During Japan's Tokugawa Era," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 21(9), pages 861-874, September.
    12. Shiue, Carol H., 2004. "Local Granaries and Central Government Disaster Relief: Moral Hazard and Intergovernmental Finance in Eighteenth- and Nineteenth-Century China," The Journal of Economic History, Cambridge University Press, vol. 64(01), pages 100-124, March.
    13. Harry T. Oshima, 1983. "Why Monsoon Asia Fell Behind the West since the 16th Century: Conjectures," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 20(2), pages 163-203, June.
    14. Jacks, David S., 2005. "Intra- and international commodity market integration in the Atlantic economy, 1800-1913," Explorations in Economic History, Elsevier, vol. 42(3), pages 381-413, July.
    15. Andrabi, Tahir & Kuehlwein, Michael, 2010. "Railways and Price Convergence in British India," The Journal of Economic History, Cambridge University Press, vol. 70(02), pages 351-377, June.
    16. Broadberry, Stephen N & Wallis, John, 2017. "Growing, Shrinking and Long Run Economic Performance: Historical Perspectives on Economic Development," CEPR Discussion Papers 11973, C.E.P.R. Discussion Papers.
    17. Myung Soo Cha, 2000. "Integration and Segmentation in International Markets for Rice and Wheat, 1877-1994," Korean Economic Review, Korean Economic Association, vol. 16, pages 107-123.
    18. Carol H. Shiue & Wolfgang Keller, 2007. "Markets in China and Europe on the Eve of the Industrial Revolution," American Economic Review, American Economic Association, vol. 97(4), pages 1189-1216, September.
    19. Carol H. Shiue, 2002. "Transport Costs and the Geography of Arbitrage in Eighteenth-Century China," American Economic Review, American Economic Association, vol. 92(5), pages 1406-1419, December.
    20. Wakita, Shigeru, 2001. "Efficiency of the Dojima rice futures market in Tokugawa-period Japan," Journal of Banking & Finance, Elsevier, vol. 25(3), pages 535-554, March.
    21. Pierre van der Eng, 2004. "Productivity and Comparative Advantage in Rice Agriculture in South-East Asia Since 1870 ," Asian Economic Journal, East Asian Economic Association, vol. 18(4), pages 345-370, December.
    22. de Zwart, Pim, 2016. "Globalization in the Early Modern Era: New Evidence from the Dutch-Asiatic Trade, c. 1600–1800," The Journal of Economic History, Cambridge University Press, vol. 76(02), pages 520-558, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Great Divergence; Famine; market integration; Tokugawa Japan; VAR; ECM;

    JEL classification:

    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East
    • N75 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Asia including Middle East
    • N95 - Economic History - - Regional and Urban History - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hit:hitcei:2018-18. 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: (Reiko Suzuki) The email address of this maintainer does not seem to be valid anymore. Please ask Reiko Suzuki to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/cehitjp.html .

    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.