Publication: West versus Far East: early globalization and the great divergence
Loading...
Official URL
Full text at PDC
Publication Date
2015
Advisors (or tutors)
Editors
Journal Title
Journal ISSN
Volume Title
Publisher
Springer Verlag
Abstract
This paper addresses two important topics in recent economic historiography: globalization and the great divergence. We first present a search for statistical evidence in the Far East of an ‘‘Early Globalization’’ comparable to the one ongoing in the West since the mid-eighteenth century. Moreover, we analyze the extent of the integration of rice markets in Central southeast China and Japan during the eighteenth and nineteenth centuries and its functioning in comparison with Western countries. Finally, the relevance of our findings for the debate on the great divergence is discussed. Our primary conclusions are as follows: (1) in contrast to the West, no international integration of the grain markets existed in the Far East during the Early Modern Era; (2) significant levels of domestic market integration were reached in some Far Eastern countries; (3) integration of the domestic grain markets may be reached through various combinations of agents and policies with dissimilar effects on long-run economic growth, which are better in the West and worse in the Far East. We suggest that the absence of an ‘‘Early Globalization’’ in the Far East reveals the existence of certain economic and institutional limitations in this part of the world that may have made contribution to its ‘‘Great Divergence’’ with the West from at least the eighteenth century.
Description
UCM subjects
Unesco subjects
Keywords
Citation
Acemoglu D, Johnson S, Robinson J (2005) The rise of Europe: Atlantic trade, institutional change, and economic growth. Am Econ Rev 95(3):546–579
Akaike H (1974) A new look at the statistical model identification. IEEE Trans Automat Contr 19(6):716–723
Allen RC (2006) Agricultural productivity and rural incomes in England and the Yangtze Delta, c. 1620- c. 1820. http://www.nuffield.ox.ac.uk/users/allen/unpublished/yangtze.pdf
Allen RC, Bassino JP, Ma D, Moll-Murata C, Van Zanden JL (2010) Wages, prices, and living standards in China, 1738–1925: in comparison with Europe, Japan, and India. Econ Hist Rev 64(1):8–38
Bassino JP (2007) Market integration and famines in early modern Japan 1717–1857. http://federation. ens.fr/ydepot/semin/texte0708/BAS2007MAR.pdf
Bassino JP, Broadberry S, Fukao K, Gupta B, Takashima M (2011) Japan and the great divergence, 730–1870. http://www2.lse.ac.uk/economicHistory/pdf/Broadberry/JapanGreatDivergence.pdf
Bolt J, Van Zanden JL (2013) The first update of the Maddison project; re-estimating growth before 1820. Maddison-Project Working Paper WP-4
Brandt L (1985) Chinese agriculture and the international economy, 1870–1930s: a reassessment. Explor Econ Hist 22:168–193
Brandt L, Ma D, Rawski T (2012) From divergence to convergence: re-evaluating the history behind China’s economic boom. Department of Economic History, London School of Economics, Working Papers No. 158/12
Cha MS (2000) Integration and segmentation in international markets for rice and wheat, 1877–1994. Korean Econ Rev 16(1):107–123
Chilosi D, Murphy TE, Studer R, Tunc¸er AC (2013) Europe’s many integrations: geography and grain markets, 1620–1913. Explor Econ Hist 50(1):46–68
Davis RA, Chen M, Dunsmuir WTM (1995) Inference for MA(1) processes with a root on or near the unit circle. Probab Math Stat 15:227–242
De Vries J (2010) The limits of globalization in the early modern world. Econ Hist Rev 63:710–733
Dobado R, García-Hiernaux A, Guerrero D (2012) The integration of grain markets in the eighteenth century: early rise of globalization in the west. J Econ Hist 72(3):671–707
Ejrnaes M, Persson KG (2000) Market integration and transport costs in France 1825–1903: a threshold error correction approach to the law of one price. Explor Econ Hist 37(2):149–173
Federico G (2008) The first European grain invasion: a study in the integration of the European market, 1750–1870. UI Working Papers HEC No. 2008/01, European University Institute
Federico G (2011) When did European markets integrate? Eur Rev Econ Hist 15(1):93–126
Federico G (2012) How much do we know about market integration in Europe? Econ Hist Rev 65(2):470–497
Federico G, Persson KG (2010) Market integration and convergence in the world wheat market, 1800–2000. Discussion Papers, Department of Economics, University of Copenhagen, 06–10
Findlay R, O’Rourke KH (2007) Power and plenty. Princeton University Press, Princeton
Flynn DO, Gira´ldez A (2004) Path dependence, time lags and the birth of globalisation: a critique of O’Rourke and Williamson. Eur Rev Econ Hist 8(1):81–108
Fo¨ldva´ri P, van Leeuwen B (2011) What can price volatility tell us about market efficiency? Conditional heteroscedasticity in historical commodity price series. Cliometrica 5(2):165–186
Frank AG (1998) ReOrient. Global economy in the Asian age. University of California Press, Berkeley
Garcia-Hiernaux A, Guerrero DE (2011) Convergence and cointegration. Available at SSRN: http://ssrn.com/abstract=1865964
Goldstone JA (2008) Why Europe? The rise of the west in world history 1500–1850. McGraw-Hill, New York
Hannan EJ, Quinn BG (1979) The determination of the order of an autoregression. J R Stat Soc B Ser 41:190–195
Harvard Business School (2010) The Dojima rice market and the origins of futures trading, case prepared by Professor David Moss and Research Associate Eugene Kintgen
Hung H (2004) Early modernities and contentious politics in mid-Qing China, c. 1740–1839. Int Sociol 19:478–503
Jones E (1981) The European miracle: environments, economies and geopolitics in the history of Europe and Asia. Cambridge University Press, Cambridge
Keller W, Li B, Shiue CH (2010) China’s foreign trade: perspectives from the past 150 years. NBER Working Paper No. 16550
Keller W, Li B, Shiue CH (2012) Shanghai’s trade, china’s growth: continuity, recovery, and change since the opium war. CEPR Discussion Papers 8808, C.E.P.R. Discussion Papers
Landes DS (1998) The wealth and poverty of nations: why some are so rich and some so poor. W. W. Norton & Company, New York
Landes DS (2006) Why Europe and the west? Why not China? J Econ Perspect 20(2):3–22
Latham AJH, Neal L (1983) The international market in rice and wheat, 1868–1914. Econ Hist Rev 36(2):260–280
Li LM (2007) Fighting famine in North China. Stanford University Press, Stanford
Li LM (2000) Integration and disintegration in North China’s grain markets, 1738–1911. J Econ Hist 60(3):665–699
Li B, Van Zanden JL (2012) Before the great divergence? Comparing the Yangtze Delta and the Netherlands at the beginning of the nineteenth century. J Econ Hist 72(4):956–989
Maddison A (2007a) The contours of the world economy, 1–2030 AD: Essays in Macro-Economic History. Oxford University Press, Oxford
Maddison A (2007b) Chinese economic performance in the long run, 960–2030, 2nd edn. OECD, Paris
Millar AE (2011) Your beggarly commerce! Enlightenment European views of the China trade. In: Abbattista Guido (ed) Encountering otherness. Diversities and transcultural experiences in early modern European culture. University of Trieste Press, Trieste, pp 205–222
Morris I (2010) Why the west rules-for now. Farrar, Straus and Giroux, New York
O’Rourke KH (2006) The worldwide economic impact of the French Revolutionary and Napoleonic Wars, 1793–1815. J Glob Hist 1:123–149
O’Rourke KH, Williamson JG (1999) Globalization and history. MIT Press, Cambridge, Mass
O’Rourke KH, Williamson JG (2002a) When did globalization begin? Eur Rev Econ Hist 6:23–50
O’Rourke KH, Williamson JG (2002b) After Columbus: explaining Europe’s overseas trade boom, 1500–1800. J Econ Hist 62(2):417–456
O’Rourke KH, Williamson JG (2004) Once more: when did globalization begin? Eur Rev Econ Hist 4:109–117
Persson KG (1999) Grain markets in Europe, 1500–1900: integration and deregulation. Cambridge University Press, Cambridge
Pomeranz K (2000) The great divergence: China, Europe, and the making of the modern world economy. Princeton University Press, Princeton
Schaede U (1989) Forwards and futures in Tokugawa-period Japan: a new perspective on the Do¯jima rice market. J Bank Financ 13(4–5):487–513
Sharp P, Weisdorf J (2013) Globalization revisited: market integration and the wheat trade between North America and Britain from the eighteenth century. Explor Econ Hist 50(1):88–98
Shin DW, Fuller WA (1998) Unit root test based on unconditional maximum likelihood estimation for the autoregressive moving average. J Time Ser Anal 19(5):591–599
Shiue CH (2005) The political economy of famine relief in China, 1740–1820. J Interdiscip Hist 38(1):33–55
Shiue CH, Keller W (2007) Markets in China in the eve of the industrial revolution. Am Econ Rev 97(4):1189–1216
Takatsuki Y (2008) The formation of an efficient market in Tokugawa Japan, Graduate School of Economics- Yasuo Institute of Social Science, The University of Tokyo Discussion Paper Series F-143
Uebele M (2011) National and international market integration in the 19th century: evidence from comovement. Explor Econ Hist 48(2):226–242
Vaporis CN (1994) Breaking barriers: travel and the state in early modern Japan. Harvard East Asian Monographs, Harvard University Press, Cambridge, Mass
Wakita S (2007) Efficiency of the Dojima rice futures market in Tokugawa-period Japan. J Bank Financ 25(3):535–554
Weber M (1905:1930) The protestant ethic and the spirit of capitalism. Unwin, London
Will PE (1990) Bureaucracy and famine in eighteenth century China. Stanford University Press, Stanford
Wong RB (1997) China transformed: historical change and the limits of European experience. Cornell University Press, Ithaca