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West versus East: Early globalization and thr great divergence
[Oeste frente a Este: Globalización temprana y gran divergencia]

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Abstract

This paper extends our previous work on grain market integration across Europe and the Americas in the eighteenth and nineteenth centuries (Dobado, García-Hiernaux and Guerrero, 2012). By using the same econometric methodology, we now present: 1) a search for statistical evidence in the East of an “Early Globalization” comparable to the one ongoing in the West by mid eighteenth century; 2) a study on the integration of grain markets in China and Japan and its functioning in comparison to Western countries; 3) a discussion of the relevance of our findings for the debate on the Great Divergence. Our main conclusions are: 1) substantial differences in the degree of integration and the functioning of grain markets are observed between East and West; 2) a certain degree of integration may be reached through different combinations of factors (agents, policies, etc.) and with dissimilar effects on long-run economic growth; 3) the absence of an “Early Globalization” in the East reveals the existence of some economic and institutional limitations in this part of the world and contributed to its “Great Divergence” with the West from at least the eighteenth century.

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  • Rafael Dobado González & Alfredo García Hiernaux & David Guerrero Burbano, 2013. "West versus East: Early globalization and thr great divergence
    [Oeste frente a Este: Globalización temprana y gran divergencia]
    ," Documentos de trabajo de la Facultad de Ciencias Económicas y Empresariales 13-08, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales.
  • Handle: RePEc:ucm:doctra:13-08 Note: Very preliminary draft, please do not quote without the authors’ permission. Rafael Dobado- González acknowledges support from the Ministry of Education of Spain under grant ECO2011-26286. Alfredo García-Hiernaux acknowledges support from Ramón Areces Foundation.
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    5. Li, Bozhong & van Zanden, Jan Luiten, 2012. "Before the Great Divergence? Comparing the Yangzi Delta and the Netherlands at the Beginning of the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 72(04), pages 956-989, December.
    6. Bassino, Jean-Pascal & Broadberry, Stephen & Fukao, Kyoji & Gupta, Bishnupriya & Takashima, Masanori, 2015. "Japan and the Great Divergence, 725-1874," CAGE Online Working Paper Series 230, Competitive Advantage in the Global Economy (CAGE).
    7. Dobado-González, Rafael & García-Hiernaux, Alfredo & Guerrero, David E., 2012. "The Integration of Grain Markets in the Eighteenth Century: Early Rise of Globalization in the West," The Journal of Economic History, Cambridge University Press, vol. 72(03), pages 671-707, September.
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    Cited by:

    1. Alfredo García-Hiernaux & David E. Guerrero & Michael McAleer, 2013. "Market Integration Dynamics and Asymptotic Price Convergence in Distribution," Tinbergen Institute Discussion Papers 13-128/III, Tinbergen Institute.
    2. Chia-Lin Chang & Michael McAleer & Ju-Ting Tang, 2013. "International Technology Diffusion of Joint and Cross-border Patents," Tinbergen Institute Discussion Papers 13-098/III, Tinbergen Institute.
    3. García-Hiernaux, Alfredo & Guerrero, David E. & McAleer, Michael, 2016. "Market integration dynamics and asymptotic price convergence in distribution," Economic Modelling, Elsevier, pages 913-925.
    4. Dobado-González, Rafael, 2013. "La globalización hispana del comercio y el arte en la Edad Moderna
      [The hispanic globalization of commerce and art in the early modern era]
      ," MPRA Paper 51112, University Library of Munich, Germany.

    More about this item

    Keywords

    Economic history; Market integration; Globalization; Great divergence; Time series analysis.;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F15 - International Economics - - Trade - - - Economic Integration
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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