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The French (Trade) Revolution of 1860: Intra-Industry Trade and Smooth Adjustment

Published online by Cambridge University Press:  03 September 2021

Stéphane Becuwe ,
Bertrand Blancheton  and
Christopher M. Meissner
Stéphane Becuwe
Affiliation:
Stéphane Becuwe is Research Director, Bordeaux School of Economics - UMR CNRS, University of Bordeaux, Avenue Duguit, Pessac, France 33608. E-mail: [email protected].
Bertrand Blancheton
Affiliation:
Bertrand Blancheton is Professor, Bordeaux School of Economics - UMR CNRS, University of Bordeaux, Avenue Duguit, Pessac, France 33608. E-mail: [email protected].
Christopher M. Meissner*
Affiliation:
Christopher M. Meissner is Professor, Department of Economics, University of California, Davis, One Shields Avenue Davis, CA 95616 and NBER.
*
E-mail: [email protected].
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Abstract

The Cobden-Chevalier treaty of 1860 eliminated French import prohibitions and lowered tariffs between France and Great Britain. The policy change was largely unexpected and unusually free from direct lobbying. A series of commercial treaties with other nations followed. Post-1860, we find a significant rise in French intra-industry trade. Sectors that liberalized more experienced higher two-way trade. Our findings are consistent with the idea that trade liberalization led to “smooth adjustment” that avoided costly inter-sectoral re-allocations of factors.

Type
Article
Information
The Journal of Economic History , Volume 81 , Issue 3 , September 2021 , pp. 688 - 722
Copyright
© The Economic History Association 2021

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Footnotes

Helpful comments from seminar participants at UC Davis, Brian Varian, three anonymous referees, and the editor, Dan Bogart, are gratefully acknowledged. Yang Gao provided excellent research assistance.

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