International Trade, Mobility and Development

Session organizer/s: Samuel Marknäs

Mare Liberum and the Golden Mine: Anglo-Dutch Relations, the Fisheries, and the Struggle for Maritime Supremacy, 1600-1800

Session: 1

Authors: Samuel Marknäs

Co-authors: NA

Abstract: This chapter examines the Anglo-Dutch conflict within the herring and whale fisheries through a political-economic between circa 1600 and 1800. Throughout most of this period, policy and action regarding the fisheries was deeply influenced by the tenets of mercantilism. It is demonstrated herein that mercantile ideology encouraged conflict within the fisheries. Economic policy is also explored in relation to maritime ideology, which was designed to ideologically justify the economic aspirations of Great Britain and the United Provinces, herein their respective desire to take proprietorship of the fisheries. Both mercantilism and the maritime doctrine in question, known as Mare Clausum, lost their sway in the late-18th century. This weakened protectionism on all fronts, both economically and ideologically, which drastically reduced tensions between Britain and the United Provinces. Though the Dutch fishing industry virtually collapsed in the late-18th century, British fishermen continued to imitate Dutch practices, underscoring the symbolic power exercised by the Dutch.

Railroads, Geographic and Social Mobility: Evidence from Nineteenth Century America

Session: 1

Authors: Maxence Castiello

Co-authors: Clément Bosquet

Abstract: Very short abstract: We provide microeconomic evidence on the effect of transportation infrastructure in shaping individuals’ opportunities. We use the expansion of the railway network in the 19th century United-States and individual-level longitudinal data. Exploiting time-variation in railroad connectivity in a DiD fashion, we document substantial shifts in the local economic activities at the county-level. These changes in the occupational structure primarly benefited the youngest cohorts, suggesting for intergenerational mobility effects. We implement a gravity framework to further investigate the underlying role of geographic mobility and local opportunities in promoting social mobility.

Trade shocks and Resilience to Economic shrinking: comparative analysis of Argentina, Australia, and Canada

Session: 1

Authors: Juan Pablo Juliá

Co-authors: Martin Andersson (Lund University)

Abstract: Convergence has been an exception since the Industrial Revolution. Rarer are the cases of divergence from the group of “rich” nations. Argentina’s experience is usually associated to falling behind when compared to other settler economies. The growth comparisons between these countries have been deeply documented (Frankema & Visker, 2011; Prados de la Escosura & Sanz-Villarroya, 2009; Sanz-Villarroya, 2005; Taylor, 1992). All in all, it seems that the Argentinian model displayed weaknesses already in the 19th century, it struggled to adapt to the shocks of the first half of the 20th century, and divergence intensified at the end of the century. Despite this large research agenda that focused on several dimensions of growth aspects, the role of economic shrinking has not been treated yet. Therefore, in this article we aim to analyze how economic shrinking behaved in these settler economies, and what were the main forces under it. For this purpose, we will put special attention in the dependence on external factors (mainly trade), the country economic structures, and its social endowments. Thus, we will emphasize the interaction between economic shrinking, external conditions, and social capabilities. We will look to the case of Argentina, in comparison to Australia, and Canada since 1880. All in all, we argue that Argentina’s relatively good performance during the First Globalization relied on positive international economic conditions. Moreover, the tailwinds of this period prevented the accomplishments of major economic and social reforms in the country. Consequently, when these conditions deteriorated, and disruptions of global trade took place, the country’s low social capabilities and the attempt to preserve the old growth regime prevented the transition to a new economic model. On the contrary, Australia and Canada managed to adapt to the changing circumstances. Thus, Argentina’s high shrinking tendencies could not be altered (while the other two countries managed to do so). With the help of the capability approach we will try to understand this shrinking story. While it is usually assumed that GDP per capita levels were similar in the three countries, Canada and Australia were remarkably different. The economic stagnation of Argentina during the 20th century would be less striking when these aspects are highlighted.