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Grain Market Integration in the Baltic Sea Region in the 19th Century

Author

Listed:
  • Andersson , Fredrik N. G.

    (Department of Economics, Lund University)

  • Ljungberg, Jonas

    (Department of Economic History, Lund University)

Abstract

This paper explores the development of market integration within the Baltic Sea region as well as between the region and England, from the early 1840s to around 1890. It exploits two new datasets on grain prices. The paper applies a new method for measuring market integration by combining a dynamic factor model with wavelet analysis. A gradual yardstick is suggested and the role of distance analyzed. Wheat and rye markets became highly integrated whereas the cheaper grains lagged. Integration progressed geographically and conclusions emphasize traded volumes and transport cost.

Suggested Citation

  • Andersson , Fredrik N. G. & Ljungberg, Jonas, 2014. "Grain Market Integration in the Baltic Sea Region in the 19th Century," Working Papers 2014:3, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2014_003
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    File URL: http://project.nek.lu.se/publications/workpap/papers/WP14_3.pdf
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    References listed on IDEAS

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    1. Dean Corbae & Sam Ouliaris & Peter C. B. Phillips, 2002. "Band Spectral Regression with Trending Data," Econometrica, Econometric Society, vol. 70(3), pages 1067-1109, May.
    2. Andersson, Fredrik N. G., 2011. "Band Spectrum Regressions using Wavelet Analysis," Working Papers 2011:22, Lund University, Department of Economics.
    3. Susan Fairlie, 1969. "The Corn Laws and British Wheat Production, 1829-76," Economic History Review, Economic History Society, vol. 22(1), pages 88-110, April.
    4. Persson, Karl Gunnar, 2004. "Mind the gap! Transport costs and price convergence in the nineteenth century Atlantic economy," European Review of Economic History, Cambridge University Press, vol. 8(2), pages 125-147, August.
    5. Giovanni Federico, 2012. "How much do we know about market integration in Europe?," Economic History Review, Economic History Society, vol. 65(2), pages 470-497, May.
    6. Jacks, David S., 2009. "On the death of distance and borders: Evidence from the nineteenth century," Economics Letters, Elsevier, vol. 105(3), pages 230-233, December.
    7. Jacks, David, 2000. "Market integration in the North and Baltic Seas, 1500-1800," Economic History Working Papers 22383, London School of Economics and Political Science, Department of Economic History.
    8. Andersson, Fredrik N.G. & Edgerton, David L. & Opper, Sonja, 2013. "A Matter of Time: Revisiting Growth Convergence in China," World Development, Elsevier, vol. 45(C), pages 239-251.
    9. Patrick M. Crowley, 2007. "A Guide To Wavelets For Economists," Journal of Economic Surveys, Wiley Blackwell, vol. 21(2), pages 207-267, April.
    10. Ronald Findlay & Kevin H. O'Rourke, 2007. "Introduction to Power and Plenty: Trade, War, and the World Economy in the Second Millennium," Introductory Chapters, in: Power and Plenty: Trade, War, and the World Economy in the Second Millennium, Princeton University Press.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Jonas Ljungberg & Lennart Sch�n, 2013. "Domestic markets and international integration: paths to industrialisation in the Nordic countries," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 61(2), pages 101-121, June.

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    More about this item

    Keywords

    Baltic Sea Region; grain prices; market integration; wavelet analysis; dynamic factor model;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • N23 - Economic History - - Financial Markets and Institutions - - - Europe: Pre-1913
    • N53 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: Pre-1913

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