American Economic Review Vol. 92 No. 5 2002
Transport Costs and the Geography of Arbitrage in Eighteenth-Century China
Abstract
Trade has been considered a condition for growth and development, a view that might have merits in explaining the rise of the Western world. I use a new data set from archival sources of eighteenth-century China to revisit this question. This analysis suggests previous studies of market integration, which attribute much growth to a reduction in transport costs, have overestimated these effects. I find the overall level of market integration in China was higher than previously thought, and, intertemporal effects are important substitutes for trade. Both factors reduce the importance of trade as a unique explanation for subsequent growth.
- DOI
- 10.1257/000282802762024566
- Volume
- 92
- Issue
- 5
- Pages
- 1406-1419
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref