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Ottoman De-Industrialization 1800-1913: Assessing the Shock, Its Impact and the Response

Author

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  • Sevket Pamuk
  • Jeffrey G. Williamson

Abstract

India and Britain were much bigger players in the 18th century world market for textiles than was Egypt, the Levant and the core of the Ottoman Empire, but these eastern Mediterranean regions did export carpets, silks and other textiles to Europe and the East. By the middle of the 19th century, they had lost most of their export market and much of their domestic market to globalization forces and rapid productivity growth in European manufacturing. Other local industries also suffered decline, and these regions underwent de-industrialization as a consequence. How different was Ottoman experience from the rest of the poor periphery? Was de-industrialization more or less pronounced? Was the terms of trade shock bigger or smaller? How much of Ottoman de-industrialization was due to falling world trade barriers -- ocean transport revolutions and European liberal trade policy, how much due to factory-based productivity advance in Europe, how much to declining Ottoman competitiveness in manufacturing, how much to Ottoman railroads penetrating the interior, and how much to Ottoman policy? The paper uses a price-dual approach to seek the answers. It documents trends in export and import prices, relative to each other and to non-tradables, as well as to the unskilled wage. The impact of globalization, European productivity advance, Ottoman wage costs and policy are assessed by using a simple neo-Ricardian three sector model, and by comparison with what was taking place in the rest of the poor periphery.

Suggested Citation

  • Sevket Pamuk & Jeffrey G. Williamson, 2009. "Ottoman De-Industrialization 1800-1913: Assessing the Shock, Its Impact and the Response," NBER Working Papers 14763, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:14763
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    Cited by:

    1. James A. Robinson, 2009. "The Political Economy of Inequality," Working Papers 493, Economic Research Forum, revised Jun 2009.
    2. Sebnem Kalemli-Ozcan & Alex Nikolsko-Rzhevskyy, 2010. "Does Trade Cause Capital to Flow? Evidence from Historical Rainfalls," NBER Working Papers 16034, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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