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Around the European periphery 1870-1913 : globalization, schooling and growth

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  • Kevin H. O'Rourke
  • Jeffrey G. Williamson

Abstract

On average, the poor European periphery converged on the rich industrial core in the four or five decades prior to the First World War. Some, like the three Scandinavian economies, used industrialization to achieve a spectacular convergence on the leaders, especially in real wages and living standards. Some, like Ireland, seemed to do it without industrialization. Some, like Italy, underwent a less spectacular catch-up, and it was limited to the industrializing North. Some, like Iberia, actually fell back. What accounts for this variety? What role did trade and tariff policy play? What about emigration and capital flows? What about schooling? We offer a tentative assessment of these contending explanations and conclude that globalization was by far the dominant force accounting for convergence (and divergence) around the periphery. Some exploited it well, and some badly.

Suggested Citation

  • Kevin H. O'Rourke & Jeffrey G. Williamson, 1995. "Around the European periphery 1870-1913 : globalization, schooling and growth," Working Papers 199517, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:199517
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    File URL: http://hdl.handle.net/10197/1783
    File Function: First version, 1995
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    References listed on IDEAS

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    1. Williamson Jeffrey G., 1995. "The Evolution of Global Labor Markets since 1830: Background Evidence and Hypotheses," Explorations in Economic History, Elsevier, vol. 32(2), pages 141-196, April.
    2. Kevin H. O'Rourke & Jeffrey G. Williamson, 1995. "Open economy forces and late 19th century Scandinavian catch-up," Working Papers 199506, School of Economics, University College Dublin.
    3. Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
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    5. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    6. Nancy L. Stokey, 1991. "Human Capital, Product Quality, and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 587-616.
    7. Luis A. Rivera-Batiz & Paul M. Romer, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 531-555.
    8. Fenoaltea, Stefano, 1988. "International resource flows and construction movements in the atlantic economy: the kuznets cycle in Italy, 1861–1913," The Journal of Economic History, Cambridge University Press, vol. 48(03), pages 605-637, September.
    9. Irwin, Douglas A., 1993. "Free Trade and Protection in Nineteenth-Century Britain and France Revisited: A Comment on Nye," The Journal of Economic History, Cambridge University Press, vol. 53(01), pages 146-152, March.
    10. repec:hhs:iuiwop:430 is not listed on IDEAS
    11. Nye, John Vincent, 1991. "The Myth of Free-Trade Britain and Fortress France: Tariffs and Trade in the Nineteenth Century," The Journal of Economic History, Cambridge University Press, vol. 51(01), pages 23-46, March.
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    Cited by:

    1. Spagat, Michael, 2006. "Human capital and the future of transition economies," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 44-56, March.
    2. Foreman-Peck, James, 2011. "The Western European marriage pattern and economic development," Explorations in Economic History, Elsevier, vol. 48(2), pages 292-309, April.
    3. John FitzGerald, 1998. "Wage Formation and the Labour Market," Papers WP095, Economic and Social Research Institute (ESRI).
    4. Di Vaio, Gianfranco & Enflo, Kerstin, 2011. "Did globalization drive convergence? Identifying cross-country growth regimes in the long run," European Economic Review, Elsevier, vol. 55(6), pages 832-844, August.
    5. Kevin H. O'Rourke, 2002. "Globalization and Inequality: Historical Trends," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 57(01), pages 65-104, March.
    6. John FitzGerald & Ide Kearney, 1999. "Migration and the Irish Labour Market," Papers WP113, Economic and Social Research Institute (ESRI).
    7. Prados de la Escosura, Leandro, 2000. "International Comparisons of Real Product, 1820-1990: An Alternative Data Set," Explorations in Economic History, Elsevier, vol. 37(1), pages 1-41, January.
    8. Emanuele Felice, 2017. "The Roots of a Dual Equilibrium: GDP, Productivity and Structural Change in the Italian Regions in the Long-run (1871-2011)," Quaderni di storia economica (Economic History Working Papers) 40, Bank of Italy, Economic Research and International Relations Area.
    9. John FitzGerald, 2001. "Wage Determination in Economies in Transition: Ireland Spain and Portugal," Papers WP141, Economic and Social Research Institute (ESRI).
    10. Crayen, Dorothee & Baten, Joerg, 2010. "Global trends in numeracy 1820-1949 and its implications for long-term growth," Explorations in Economic History, Elsevier, vol. 47(1), pages 82-99, January.
    11. Emanuele Felice, 2011. "Regional value added in Italy over the long run (1891-2001): linking indirect estimates with official figures, and implications," UHE Working papers 2011_04, Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica.
    12. Kévin H. O’Rourke & Richard Sinnott, 2004. "Flux migratoires : économie politique de la migration et enjeux empiriques," Revue d’économie du développement, De Boeck Université, vol. 12(3), pages 45-76.
    13. Aurelian Plopeanu, “Alexandru Ioan Cuza” & Peter Foldvari & Bas van Leeuwen & Jan Luiten van Zanden, 2012. "Where do ideas come from? Book production and patents in global and temporal perspective," Working Papers 0033, Utrecht University, Centre for Global Economic History.
    14. Williamson, Jeffrey G., 1998. "Growth, Distribution, and Demography: Some Lessons from History," Explorations in Economic History, Elsevier, vol. 35(3), pages 241-271, July.
    15. Gianfranco Di Vaio & Kerstin Enflo, 2009. "Did Globalization Lead to Segmentation? Identifying Cross-Country Growth Regimes in the Long-Run," Working Papers CELEG 0902, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    16. Ralph Hippe & Joerg Baten, 2011. "Regional Inequality in Human Capital Formation in Europe, 1790 - 1880," Working Papers 11-07, Association Française de Cliométrie (AFC).
    17. Schiff, Maurice, 1996. "South-North migration and trade : a survey," Policy Research Working Paper Series 1696, The World Bank.
    18. Meissner, Christopher M., 2014. "Growth from Globalization? A View from the Very Long Run," Handbook of Economic Growth,in: Handbook of Economic Growth, edition 1, volume 2, chapter 8, pages 1033-1069 Elsevier.
    19. John FitzGerald, 1999. "Understanding Ireland's Economic Success," Papers WP111, Economic and Social Research Institute (ESRI).
    20. Albert Carreras & Camilla Josephson, 2009. "Growing at the production frontier. European aggregate growth, 1870-1914," Economics Working Papers 1179, Department of Economics and Business, Universitat Pompeu Fabra.

    More about this item

    Keywords

    International economic integration--History; Convergence (Economics)--Europe; Europe--Economic conditions--Regional disparities;

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913

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