Early globalizations: The integration of Asia in the world economy, 1800–1938

• Published in: Explorations in economic history Vol. 57; pp. 1 - 18
• Main Authors: Chilosi, David, Federico, Giovanni
• Format: Journal Article
• Language: English
• Published: Madison Elsevier Inc 01-07-2015; Elsevier BV
• Subjects: Asia; Communication; Convergence; Economic growth; Economic history; Europe; Globalization; International trade; Japan; Market integration; Nineteenth century; U.S.A; World economy; World market; World War Two; Asia; International trade; F63; Economic growth; Asia; Globalization; F14; Market integration; O40; N74; F15; N75; Nineteenth century
• ISSN: 0014-4983; 1090-2457
• DOI: 10.1016/j.eeh.2015.04.001

This paper contributes to the debate on globalization and the great divergence with a comprehensive analysis of the integration of Asia in the world market from 1800 to the eve of World War II. We examine the patterns of convergence in prices for a wide range of commodities between Europe and the main Asian countries (India, Indonesia, Japan and China) and we compare them with convergence between Europe and the East Coast of the United States, hitherto the yardstick for the 19th century. Most price convergence occurred before 1870, mainly as a consequence of the abolition of the European trading monopolies with Asia, and, to a lesser extent, the repeal of duties on Atlantic trade. After 1870, price differentials continued to decline thanks to falling freights and to better communication after the lay-out of telegraph cables. There was only little disintegration in the inter-war years.