Temporary Protection and Technology Adoption: Evidence from the Napoleonic Blockade

Réka Juhász

American Economic Review, 2018, vol. 108, issue 11, 3339-76

Abstract: This paper uses a natural experiment to estimate the causal effect of temporary trade protection on long-term economic development. I find that regions in the French Empire which became better protected from trade with the British for exogenous reasons during the Napoleonic Wars (1803-1815) increased capacity in mechanized cotton spinning to a larger extent than regions which remained more exposed to trade. In the long run, regions with exogenously higher spinning capacity had higher activity in mechanized cotton spinning. They also had higher value added per capita in industry up to the second half of the nineteenth century, but not later.

JEL-codes: F13 L67 N43 N63 N73 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/aer.20151730
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Citations: View citations in EconPapers (27)

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