"Trade and Development: Evidence from the Napoleonic" Topic
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| Tango01 | 20 Oct 2017 11:14 a.m. PST |
"This paper uses a natural experiment to assess whether temporary protection fromtrade with the industrial leader can foster development in infant industries in follower
countries. Using a new dataset compiled from primary sources, I show that regions(départements) in the French Empire which became better protected from trade with
the British for exogenous reasons during the Napoleonic Wars (1803-15) increasedcapacity in mechanised cotton spinning to a larger extent than regions which remained
more exposed to trade. Temporary protection from trade proved to have long-termeffects. First, after the restoration of peace, exports of cotton goods in France grew
faster than Britain's exports of the same. Second, emulation of Britain's success wasnot inevitable. As late as 1850, France and Belgium – both part of the French Empire
prior to 1815, had larger cotton spinning industries than other Continental Europeancountries. Third, within France, firms in areas that benefited from more protection during the Napoleonic Wars had significantly higher labour productivity in cotton spinning in 1840 than regions which received a smaller shock…."
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