Monetary Union, Trade Integration, and Business Cycles in 19th Century Europe

Flandreau, Marc; Maurel, Mathilde

doi:10.1007/s11079-005-5872-4

Cited by 82 publications

(76 citation statements)

References 27 publications

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“…Flandreau and Maurel (2001) and López-Córdova and Meissner (2003) use data sets that include monetary unions from the pre-WWI period. Estevadeoral, Frantz, and Taylor (2003) estimate a lower bound on the currency union effect by using membership in the gold standard; the inclusion of their estimates imparts a slight downward bias to the meta-analysis below.…”

Section: A Short History Of the Literaturementioning

confidence: 99%

“…A number of researchers have followed Rose (2000) in worrying about reverse causality, including: Alesina, Barro and Tenreyro (2003), Bomberger (2002) Flandreau andMaurel (2001), López-Córdova and Meissner (2003), Smith (2002), and Tenreyro (2001). 1 It is also possible to take a more structural approach that accounts for countryspecific effects (Rose and van Wincoop 2001).…”

Section: A Short History Of the Literaturementioning

confidence: 99%

“…Finally, some research takes the large effect of currency union on trade as given and seeks to d etermine the implications of this estimate (Frankel andRose 2002, Flandreau andMaurel 2001). Other aspects of the behavior of currency union members are examined by Rose and Engel (2002) and Fatás and Rose (2001).…”

Section: A Short History Of the Literaturementioning

confidence: 99%

See 2 more Smart Citations

A Meta-Analysis of the Effect of Common Currencies on International Trade*

Rose

Stanley

2005

Journal of Economic Surveys

269

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Thirty-four recent studies have investigated the effect of currency union on trade, resulting in 754 point estimates of this effect. This paper uses meta-analysis to combine, explain, and to summarize these disparate estimates of common currency trade effects. The hypothesis that there is no effect of currency union on trade is easily and robustly rejected at standard significance leve ls. Combining these estimates implies that a currency union increases bilateral trade by between 30% and 90%. Although there is evidence of publication selection, there is also evidence of a genuine positive trade effect beyond publication bias. JEL Classification Number: F34

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Section: A Short History Of the Literaturementioning

confidence: 99%

Section: A Short History Of the Literaturementioning

confidence: 99%

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A Meta-Analysis of the Effect of Common Currencies on International Trade*

Rose

Stanley

2005

Journal of Economic Surveys

269

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“…Estevadeordal, Frantz and Taylor (2003), Flandreau and Maurel (2001) From their comments, it is obvious that determining total trade costs is more complex than adding together an ad valorem tariff value and unit shipping costs. Shipping costs were difficult to calculate directly as they varied by good, season, and with local economic conditions.…”

Section: Historical Perspectives On Trade Costsmentioning

confidence: 99%

Trade Costs in the First Wave of Globalization

Jacks¹,

Meissner²,

Novy³

2006

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What drives globalization today and in the past? We employ a new micro-founded measure of bilateral trade costs based on a standard model of trade in differentiated goods to address this question. These trade costs gauge the difference between observed bilateral trade and frictionless trade. They comprise tariffs, transportation costs and all other factors that impede international trade but which are inherently difficult to observe. Trade costs fell on average by ten to fifteen percent between 1870 and 1913. We also use this measure to decompose the growth of global trade over that period and find that roughly 44 percent of the global trade boom can be explained by reductions in trade costs; the remaining 56 percent is attributable to economic expansion. Abstract What drives globalization today and in the past? We employ a new micro-founded measure of bilateral trade costs based on a standard model of trade in differentiated goods to address this question. These trade costs gauge the difference between observed bilateral trade and frictionless trade. They comprise tariffs, transportation costs and all other factors that impede international trade but which are inherently difficult to observe. Trade costs fell on average by ten to Þfteen percent between 1870 and 1913. We also use this measure to decompose the growth of global trade over that period and Þnd that roughly 44 percent of the global trade boom can be explained by reductions in trade costs; the remaining 56 percent is attributable to economic expansion.

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“…The approach, of course, is not new. In the last decade, a number of works have analyzed the forces that drove trade during the First Globalization by introducing different measures of, or proxies for, trade barriers into a gravity equation (Estevadeordal et al 2003;Ló pez-Có rdova and Meissner 2003;Flandreau and Maurel 2005;Mitchener and Weidenmier 2008;Jacks and Pendakur 2010).…”

Section: Introductionmentioning

confidence: 99%

The peripheral protectionist backlash in theFirst Globalization: Spain (1870-1913)

Sabaté¹,

Castejón²,

Gracia³

2011

RHE / JILAEH

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This paper studies the role played by different trade barriers (transport costs, customs and currency) in the evolution of Spanish imports during the First Globalization . Through the estimation of several gravity equations with panel data analysis, we obtain the elasticities of imports to each barrier, which allows us to combine them into a single ad valorem measure of barriers to trade (which we call the trade costs tariff equivalent). More interestingly, the contribution of the barriers to the profile of the tariff equivalent, as well as the assignment of an active role to the peseta exchange rate as a barrier, illustrates the existence of a protectionist backlash against the sustained decline in transport costs in the period 1870-1913.

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Monetary Union, Trade Integration, and Business Cycles in 19th Century Europe

Cited by 82 publications

References 27 publications

A Meta-Analysis of the Effect of Common Currencies on International Trade*

A Meta-Analysis of the Effect of Common Currencies on International Trade*

Trade Costs in the First Wave of Globalization

The peripheral protectionist backlash in theFirst Globalization: Spain (1870-1913)

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