Institutional Affiliation: GREThA - UMR Université de Bordeaux
|The French (Trade) Revolution of 1860: Intra-Industry Trade and Smooth Adjustment|
with , : w25173
The Cobden-Chevalier treaty of 1860 eliminated many French import prohibitions and lowered tariffs between France and Britain. Policy change was largely unexpected and unusually free from direct lobbying. A series of commercial treaties with other nations followed because of the use of the unconditional-MFN clause. Post-1860 in France, we find a significant rise in intra-industry trade. On average, rising imports did not prejudice exports. Liberalization allowed for an expansion of two-way trade in differentiated products. The findings are consistent with the “smooth adjustment” hypothesis. Anti-competitive, protectionist lobbying apparent from 1878 was not necessarily a backlash to enhanced international competition.
|Stages of Diversification: France, 1836-1938|
with , : w21777
A large literature has documented an association between economic growth and export diversification. We study this question in France between 1836 and 1938. The period witnessed the onset of modern economic growth and sharp changes in the level of international competition. We use a new long term database on French foreign trade at a high level of disaggregation. At the dawn of the first Globalization, France appears to have specialized along Ricardian lines, exporting a handful of textile products in large quantities. There is a decrease in specialization from 1860 to World War I along the lines of modern studies. Changes in trade costs along with economic growth help explain the evolution of France’s comparative advantage. The decline of export concentration is associated with a chronic ...