Hostname: page-component-745bb68f8f-l4dxg Total loading time: 0 Render date: 2025-01-09T22:24:54.981Z Has data issue: false hasContentIssue false
  • English
  • Français

The Integration of Grain Markets in the Eighteenth Century: Early Rise of Globalization in the West

Published online by Cambridge University Press:  22 August 2012

RAFAEL DOBADO-GONZÁLEZ ,
ALFREDO GARCÍA-HIERNAUX  and
DAVID E. GUERRERO
RAFAEL DOBADO-GONZÁLEZ*
Affiliation:
Professor, Departament of Economic History, Universidad Complutense de Madrid, Campus de Somosaguas, 28224 Pozuelo de Alarcón, Madrid, Spain. E-mail: [email protected].
ALFREDO GARCÍA-HIERNAUX*
Affiliation:
Associate Professor, Department of Quantitative Economics, Economic and Business School, Universidad Complutense de Madrid, Campus de Somosaguas, 28224 Pozuelo de Alarcón, Madrid, Spain. E-mail: [email protected].
DAVID E. GUERRERO*
Affiliation:
Assistant Professor, CUNEF (Colegio Universitario de Estudios Financieros), Serrano Anguita 9, 28004 Madrid, Spain. E-mail: [email protected].
Get access Rights & Permissions [Opens in a new window]

Abstract

Globalization, if defined as the integration of international commodity markets, started in the eighteenth century and progressed gradually and with some setbacks into the nineteenth century, instead of suddenly appearing at some point after the 1820s. We use grain prices in Europe and the Americas to determine the extent and dynamics of market integration throughout the eighteenth and nineteenth centuries. An innovative methodology, with special attention being paid to changes in residual dispersion of the univariate models of relative prices between markets, permits us to obtain a measure of market integration over time.

Type
ARTICLES
Information
The Journal of Economic History , Volume 72 , Issue 3 , 22 August 2012 , pp. 671 - 707
Copyright
Copyright © The Economic History Association 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Acemoglu, Daron, Johnson, Simon, and Robinson, James. “The Rise of Europe: Atlantic Trade, Institutional Change, and Economic Growth.” American Economic Review 95, no. 3 (2005): 546–79.CrossRefGoogle Scholar
Alberola, Armando.. “La actividad comercial de los puertos de Valencia, Alicante y Cartagena durante la edad moderna. Una aproximación historiográfica.” In La storiografia marittima in Italia e in Spagna in età moderna e contemporánea. Tendeze, orientamenti, linee evolutive, edited by Di Vittorio, A. and Barciela, C., 237–52. Bari: Cacucci Editore, 2001.Google Scholar
Andersen, Dan H., and Voth, Hans-Joachim. “Neutrality and Mediterranean Shipping Under Danish Flag, 1750-1807.” Oxford University Economic and Social History Series 18, Economics Group, Nuffield College, University of Oxford, 1997.Google Scholar
Bateman, Victoria N. “The Evolution of Markets in Early Modern Europe, 1350-1800: A Study of Grain Prices.” Discussion Paper Series 350, University of Oxford, Department of Economics, 2007.Google Scholar
Bogart, Dan.. “Did Turnpike Trusts Increase Transportation Investment in Eighteenth-Century England?” The Journal of Economic History 65, no. 2 (2005a): 439–68.Google Scholar
Bogart, Dan.. “Turnpike Trusts and the Transportation Revolution in Eighteenth-Century England.” Explorations in Economic History 42, no. 4 (2005b): 479–508.CrossRefGoogle Scholar
Bogart, Dan.. “Inter-Modal Network Externalities and Transport Development: Evidence from Roads, Canals, and Ports During the English Industrial Revolution.” Networks and Spatial Economics 9, no. 3 (2009): 309–38.CrossRefGoogle Scholar
Braudel, Ferdinand.. The Structures of Everyday Life: The Limits of the Possible, Volume 1 Civilization and Capitalism, 15th-18th Century, University of California Press, Berkeley and Los Angeles, 1992.Google Scholar
Burzio, Humberto F.Diccionario de la Moneda Hispanoamericana 2, Fondo Histórico y Bibliográfico José Toribio Medina, Santiago de Chile, 1956-1958.Google Scholar
Cáceres, Juan.. “Una vieja y olvidada relación económica: Perú y Chile en torno al trigo” Mimeo, 2010, visited on September 30, 2010. Available at http://www.economia.unam.mx/cladhe/registro/ponencias/453_abstract.docGoogle Scholar
Challú, Amílcar.. “Grain Market Integration in Late Colonial Mexico.” Paper presented at the Mellon Conference, Yale University, 2006.Google Scholar
Chevet, Jean-Paul, and Saint-Amour, Pascal. “L'intégration des marchés du blé en France aux xviiie et xixe siècles.” Cahiers d'Economie et Sociologie Rurales, 1st term (1992): 151–75.CrossRefGoogle Scholar
Crespo, Ana María. “El comercio marítimo entre Cádiz y Amsterdam, 1713-1778.” Estudios de historia económica, Banco de España 40 (2000): 7–162.Google Scholar
Crespo, Ana María. “El comercio holandés y la integración de espacios económicos entre Cádiz y el Báltico en tiempos de guerra, 1699-1723.” Investigaciones de Historia Económica 8 (2007): 45–76.CrossRefGoogle Scholar
Cuenca, Javier.. “Statistics of Spain's Colonial Trade, 1747-1820: New Estimates and Comparisons with Great Britain.” Revista de Historia Económica/Journal of Iberian and Latin American Economic History 26, no. 3 (2008): 323–54.CrossRefGoogle Scholar
Cusick, James G. “Spanish East Florida in the Atlantic Economy of the Late Eighteenth Century.” In Colonial Plantations and Economy in Florida, edited by Landers, J. G., 168–88. Gainsville: The University Press of Florida, 2000.Google Scholar
Davis, Richard A., Chen, Meiching, and Dunsmuir, William T. M.. “Inference for ma(1) Processes with a Root on or Near the Unit Circle.” Probability and Mathematical Statistics 15 (1995): 227–42.Google Scholar
De Vries, Jan. “The Limits of Globalization in the Early Modern World.” The Economic History Review 63, no. 3 (2010): 710–33.CrossRefGoogle Scholar
Dobado, Rafael, and Marrero, Gustavo. “Corn Market Integration in Porfirian Mexico.” The Journal of Economic History 65, no. 1 (2005): 103–28.CrossRefGoogle Scholar
Dobado, Rafael, and Marrero, Gustavo. “Convergencia e integración del mercado del trigo en España, 1856-1935.” Mimeo, paper presented at the VIII Congreso de la Asociación Española de Historia Económica, Santiago de Compostela, Spain, 2005.Google Scholar
Ejrnaes, Mette, and Gunnar Persson, Karl. “Market Integration and Transport Costs in France, 1825-1903: A Threshold Error Correction Approach to the Law of One Price.” Explorations in Economic History 37, no. 2 (2000): 149–73.CrossRefGoogle Scholar
Federico, Giovanni.. “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, 2008.Google Scholar
Federico, Giovanni.. “A Tale of Two Oceans: Market Integration over the High Seas, 1800-1940.” Mimeo, paper presented at the Conference of the European Historical Economics Society, Dublin, 2011. Available online at http://www.ehes2011.com/papers/Tale%20of%20two%20Oceans%20%28Dublin%20EHES%29.pdf.Google Scholar
Federico, Giovanni, and Gunnar Persson, Karl. “Market Integration and Convergence in the World Wheat Market, 1800-2000.” In The New Comparative Economic History: Essays in Honour of Jeffrey G. Williamson, edited by Hatton, T., O'Rourke, K., and Taylor, A. M., 87–114. Cambridge, MA: MIT Press, 2007.CrossRefGoogle Scholar
Findlay, Ronald, and O'Rourke, Kevin H.. Power and Plenty. Princeton, NJ: Princeton, Princeton University Press, 2007.CrossRefGoogle Scholar
Flavell, Julie.. When London Was Capital of America. New Haven, CT and London: Yale University Press, 2010.Google Scholar
Florescano, Enrique.. Precios del maíz y crisis agrícolas en México. México: Ediciones Era, 1986.Google Scholar
Flynn, Dennis O., and Giráldez, Arturo. “Cycles of Silver: Globalization as Historical Process.” World Economics 3, no. 2 (2002): 1–16.Google Scholar
Flynn, Dennis O., and Giráldez, Arturo. “Path Dependence, Time Lags, and the Birth of Globalisation: A Critique of O'Rourke and Williamson.” European Review of Economic History 8, no. 1 (2004): 81–108.CrossRefGoogle Scholar
Földváry, Peter, and Van Leeuwen, Bas. “What Can Price Volatility Tell Us About Market Efficiency? Conditional Heteroscedasticity in Historical Commodity Price Series.” Cliometrica 5, no. 2 (2011): 165–86.CrossRefGoogle Scholar
Forni, Mario.. “Using Stationarity Tests in Antitrust Market Definition.” American Law and Economics Review 6, no. 2 (2004): 441–64.CrossRefGoogle Scholar
Galor, Oded and Mountford, Andrew. “Trading Population for Productivity: Theory and Evidence.” Review of Economic Studies 75, no. 4 (2008): 1143–79.CrossRefGoogle ScholarPubMed
Garcia-Hiernaux, Alfredo, and Guerrero, David E.. “Convergence and Cointegration.” Instituto Complutense de Análisis Económico, Working Paper #22, 2011.Google Scholar
Garner, Richard L.Economic Growth and Change in Bourbon Mexico. Gainesville: University Press of Florida, 1993.Google Scholar
Guimerá, Agustín.. “La casa Milans: una empresa catalana en Rusia (1773-1779).” Pedralbes: Revista d'historia moderna 18, no. 1 (1998): 83–92.Google Scholar
Harley, Charles Knick. “British Industrial Revolution Before 1841: Evidence of Smaller Growth During the Industrial Revolution.” The Journal of Economic History 42, no. 2 (1982): 267–85.CrossRefGoogle Scholar
Hernández González, Manuel. “El comercio canario-norteamericano y la exportación de harinas a Cuba en el siglo XVIII.” Vegueta 1, no. 2 (1995-1996): 81–101.Google Scholar
Hersh, Jonathan, and Voth, Hans-Joachim. “Sweet Diversity: Colonial Goods and the Rise of European Living Standards After 1492.” CEPR Discussion Papers 7386, 2009.CrossRefGoogle Scholar
Hummels, David.. “Transportation Costs and International Trade in the Second Era of Globalization.” Journal of Economic Perspectives 21, no. 3 (2007): 131–54.CrossRefGoogle Scholar
Hunter, Brooke.. “Wheat, War, and the American Economy During the Age of Revolution.” The William and Mary Quarterly 62, no. 3 (2005), 505–26. http://www.historycooperative.org/journals/wm/62.3/hunter.html#F_2.CrossRefGoogle Scholar
Jacks, David S. “Market Integration in the North and Baltic Seas, 1500-1800.” Journal of European Economic History 33, no. 2 (2004): 285–339.Google Scholar
Jacks, David. S. “Intra- and International Commodity Market Integration in the Atlantic Economy, 1800-1913.” Explorations in Economic History 42, no. 3 (2005): 381–413.CrossRefGoogle Scholar
Jacks, David. S. “What Drove Nineteenth-Century Commodity Market Integration?” Explorations in Economic History 43, no. 3 (2006): 383–412.CrossRefGoogle Scholar
Jacks, David, and Pendakur, Krishna. “Global Trade and the Maritime Transport Revolution.” Review of Economics and Statistics 92, no. 4 (2010): 745–55.CrossRefGoogle Scholar
Jefferson, Thomas.. The Writings of Thomas Jefferson, edited by Bergh, A. L., Vol. 3, Washington, DC: Thomas Jefferson Memorial Association of the United States, 1907.Google Scholar
Johansen, Hans-Christian.. “Scandinavian Shipping in the Late Eighteenth Century in a European Perspective.” Economic History Review 45 New Series, no. 3 (1992): 479–93.CrossRefGoogle Scholar
Johnson, Sherry.. “Climate, Community, and Commerce Among Florida, Cuba, and the Atlantic World, 1784-1800.” The Florida Historical Quarterly 80, no. 4 (2002): 455–82.Google Scholar
Kahan, Arcadius.. The Plow, the Hammer, and the Knout: An Economic History of Eighteenth-Century Russia. Chicago: University of Chicago Press, 1985.Google Scholar
Kaukiainen, Yijo.. “Shrinking the World: Improvements in the Speed of Information Transmission, c. 1820-1870.” European Review of Economic History 5, no. 1 (2001): 1–28.CrossRefGoogle Scholar
Leonard, Adrian.. “Insuring Atlantic Trade: Risk Transfer Networks in War and Peace.” Mimeo, paper presented at the X Congress of the Spanish Association of Economic History, 2011. http://www.aehe.net/xcongreso/pdf/sesiones/redes-atlanticas/insuring-atlantic-trade.pdf.Google Scholar
Llopis, Enrique, and Jerez, Miguel. “El mercado de trigo en Castilla y León, 1691-1788: arbitraje espacial e intervención.” Historia Agraria 25 (2001): 13–68.Google Scholar
Llopis, Enrique and Sotoca, Sonia. “Antes, bastante antes: la primera fase de la integración del mercado español de trigo, 1725-1808.” Historia Agraria 36 (2005a): 225–62.Google Scholar
Llopis, Enrique and Sotoca, Sonia. “La integración del mercado español del trigo en los siglos XVIII y XIX: un proceso precoz, prolongado y agitado.” VIII Congress of the Spanish Association of Economic History, 2005b. Available online at http://www.usc.es/estaticos/congresos/histec05/b10_llopis_sotoca.pdf.Google Scholar
Lydon, James G.Fish and Flour for Gold, 1600-1800: Southern Europe in the Colonial Balance of Payments, An e-Publication of the Program in Early American Economy and Society, Library Company of Philadelphia, 2008. Available online at http://www.librarycompany.org/economics/PDF%20Files/lydon_web.pdf.Google Scholar
Maddison, Angus.. “Growth Accounts, Technological Change, and the Role of Energy in Western Growth.” Available online at http://www.ggdc.net/maddison/, 2003.Google Scholar
Mancall, PeterRosenbloom, Joshua, and Weiss, Thomas. “Commodity Exports, Invisible Exports, and Terms of Trade for the Middle Colonies, 1720 to 1775,” NBER Working Paper No. 14334, Cambridge, MA, September 2008.Google Scholar
Manera, Carles.. “Mallorca en el planeta mediterrani. Les línies bàsiques d'inversió del capital comercial, 1700-1900.” Randa 42 (1999): 81–148.Google Scholar
Martin Corrales, Eloy. “Cereales y capitanes greco-otomanos en la Málaga de fines del siglo XVIII.” Estudis d'Història Econòmica 2 (1989): 87–114.Google Scholar
Martin Corrales, Eloy. “El comercio de Cataluña con el Levante otomano en el siglo XVIII (1782-1808).” Paper presented at VII Jornades d'Estudis Històrics Locals. La Mediterrània: Antropologia història, Mallorca, 1990: 145-60.Google Scholar
Martin Corrales, Eloy. “El comercio de Cádiz con el Levante Otomano en el siglo XVIII.” Actas del II Congreso de Historia de Andalucía. Andalucía Moderna II, Córdoba, 1995: 389-400.Google Scholar
Martin Corrales, Eloy. “El comercio de España con los países musulmanes del Mediterráneo (1492-1782): eppur si muove.” In Relazioni economiche tra Europa e mondo islámico, edited by Cavaciocchi, S. Secc. XIII-XVIII, Atti delle Trentotessima Settimana di Studi, Prato, Le Monnier, 2007: 485–510.Google Scholar
Ruíz, Martínez, Ignacio, José. “El mercado internacional de cereales y harinas y el abastecimiento de la periferia española en la segunda mitad del siglo xviii: Cádiz, entre la regulación y el mercado.” Investigaciones en Historia Económica 1 (2005): 45–79.CrossRefGoogle Scholar
Matson, Cathy., ed. The Economy of Early America: Historical Perspectives and New Directions. University Park: Pennsylvania State University Press, 2006.Google Scholar
Menard, Russell R. “Transport Costs and Long-Range Trade, 1300-1800: Was There a ‘Transport Revolution' in the Early Modern Era?” In The Political Economy of Merchant Empires, edited by Tracy, J. D., 228–75. Cambridge: Cambridge University Press, 1997.Google Scholar
Mironov, Boris. N. “Consequences of the Price Revolution in Eighteenth-Century Russia.” Economic History Review 45, no. 3 (1992): 457–78.CrossRefGoogle Scholar
Mohammed, Saif S., and Williamson, Jeffrey G.. “Freight Rates and Productivity Gains in British Tramp Shipping, 1869-1950.” Explorations in Economic History 41, no. 2 (2004): 172–203.CrossRefGoogle Scholar
Moraes, María Inés. Las economías agrarias del Litoral rioplatense en la segunda mitad del siglo XVIII. Ph.D. thesis, Universidad Complutense de Madrid, 2011.Google Scholar
Müller, Leos.. “Swedish Shipping Industry: A European and Global Perspective, 1600-1800.” Journal of History for the Public 6 (2006): 30–47.Google Scholar
North, Douglass C. “Sources of Productivity Change in Ocean Shipping, 1600-1850.” Journal of Political Economy 76, no. 5 (1968): 953–70.CrossRefGoogle Scholar
O'Rourke, Kevin H. “The Worldwide Economic Impact of the French Revolutionary and Napoleonic Wars, 1793-1815.” Journal of Global History 1, no. 1 (2006): 123–49.CrossRefGoogle Scholar
O'Rourke, Kevin H., Roses, Joan, and Williamson, Jeffrey G.. “Globalization, Growth, and Distribution in Spain, 1500-1913.” Universidad Carlos III de Madrid, Working Papers in Economic History, 07-08, 2007.Google Scholar
O'Rourke, Kevin H., and Williamson, Jeffrey G.. Globalization and History. Cambridge, MA: MIT Press, 1999.CrossRefGoogle Scholar
O'Rourke, Kevin H., and Williamson, Jeffrey G. “After Columbus: Explaining Europe's Overseas Trade Boom, 1500-1800.” The Journal of Economic History 62, no. 2 (2002a): 417–56.CrossRefGoogle Scholar
O'Rourke, Kevin H., and Williamson, Jeffrey G. “When Did Globalization Begin?” European Review of Economic History 6 (2002b): 23–50.CrossRefGoogle Scholar
O'Rourke, Kevin H., and Williamson, Jeffrey G. “Once More: When Did Globalization Begin?” European Review of Economic History 8 (2004): 109–17.CrossRefGoogle Scholar
O'Rourke, Kevin H., and Williamson, Jeffrey G. “From Malthus to Ohlin: Trade, Growth, and Distribution Since 1500.” Journal of Economic Growth 10, no. 1 (2005): 5–34.CrossRefGoogle Scholar
Özmucur, Suleyman and Pamuk, Sevket. “Did European Commodity Prices Convergence During 1500-1800?” In The New Comparative Economic History: Essays in Honour of Jeffrey G. Williamson, edited by Hatton, T., O'Rourke, K., and Taylor, A. M., 59–85. Cambridge, MA: MIT Press, 2007.CrossRefGoogle Scholar
Persson, Karl Gunnar. Grain Markets in Europe, 1500-1900: Integration and Deregulation. Cambridge, MA: Cambridge University Press, 1999.CrossRefGoogle Scholar
Persson, Karl Gunnar. “Mind the Gap! Transport Costs and Price Convergence in the Nineteenth Century Atlantic Economy.” European Review of Economic History 12, no. 2 (2004): 125–47.CrossRefGoogle Scholar
Pomeranz, Kenneth.. The Great Divergence. Princeton, NJ and Oxford: Princeton University Press, 2001.Google Scholar
Roehner, Bertrand M. “Les mecanismes d'interdépendance spatiale entre marchés du blé aux XIXe siècle.” Histoire, Economie et Société Trezième année, no. 2 (1994): 343–94.CrossRefGoogle Scholar
Rönnbäck, Klas.. “Integration of Global Commodity Markets in the Early Modern Era.” European Review of Economic History 13, no. 1 (2009): 95–120.CrossRefGoogle Scholar
Sharp, Paul.. “The Long American Grain Invasion of Britain: Market Integration and the Wheat Trade Between North America and Britain from the Eighteenth Century.” Discussion Papers, Department of Economics, University of Copenhagen, 2008a.CrossRefGoogle Scholar
Sharp, Paul.. “Why Globalisation Might Have Started in the Eighteenth Century.” VOX, http://www.voxeu.org/index.php?q=node/1145, 2008b.Google Scholar
Shepherd, James F., and Walton, Gary M.. Shipping, Maritime Trade, and the Economic Development of Colonial North America. Cambridge, MA: Cambridge University Press, 1979.Google Scholar
Shin, Dong Wan, and Fuller, Wayne A.. “Unit Root Test Based on Unconditional Maximum Likelihood Estimation for the Autoregressive Moving Average.” Journal of Time Series Analysis 19, no. 5 (1998): 591–99.CrossRefGoogle Scholar
Shiue, Carol H., and Keller, Wolfgang. “Markets in China and Europe on the Eve of the Industrial Revolution.” American Economic Review 97, no. 4 (2007): 1189–1216.CrossRefGoogle Scholar
Stein, Stanley J., and Stein, Barbara H.. El apogeo del imperio. Barcelona: Crítica, 2005.Google Scholar
Studer, Roman.. “India and the Great Divergence: Assessing the Efficiency of Grain Markets in Eighteenth- and Nineteenth-Century India.” The Journal of Economic History 68, no. 2 (2008): 393–437.CrossRefGoogle Scholar
Topik, Steven.. “The Integration of the World Coffee Market.” In The Global Coffee Economy in Africa, Asia, and Latin America, 1500-1989, edited by Clarence-Smith, W. and Topik, S., 21–49. Cambridge, MA: Cambridge University Press, 2003.Google Scholar
Treadway, Arthur B. “Theory of the Extent of the Market.” Available at SSRN, http://ssrn.com/abstract=1372165, 2009.CrossRefGoogle Scholar
Van Bochove, Christian. The Economic Consequences of the Dutch. Amsterdam: Aksant, 2008.Google Scholar
Van Tielhof, Milja. The ‘Mother of All Trades': The Baltic Grain Trade in Amsterdam from the Late Sixteenth to the Early Nineteenth Century. Leiden: Brill, 2002.CrossRefGoogle Scholar
Zanden, Van, Luiten, Jan, and Van Tielhof, Milja. “Roots of Growth and Productivity Change in Dutch Shipping Industry, 1500-1800.” Explorations in Economic History 46, no. 4 (2009): 389–403.CrossRefGoogle Scholar
Von Grafenstein, Johanna. Nueva España en el circuncaribe, 1779-1808. Universidad Nacional Autónoma de México, México DF, 1997.Google Scholar
Widmer, Rolf.. “Veracruz y el comercio de harinas en el Caribe español, 1760-1830.” Universidad de Alcalá de Henares. Servicio de Publicaciones, 1996. Available at http://hdl.handle.net/10017/5925.Google Scholar