Revisiting the ‘Cobden-Chevalier network’ trade and welfare effects

Jacopo Timini

Explorations in Economic History, 2023, vol. 89, issue C

Abstract: This study revisits the trade and welfare effects of 19th century bilateralism exploiting the latest developments in structural gravity models, including the consideration of domestic trade. Using bilateral trade data between 1855 and 1875, I show that the Cobden-Chevalier network, i.e. a system of bilateral trade agreements including the Most Favored Nation clause, has large, positive and significant effects on members’ trade. These, however, are heterogeneous at the treaty-level. I then calculate its general equilibrium effects on total trade and welfare. They are considerable, while trade diversion effects are negligible. These results reshape the understanding of the Cobden-Chevalier network, helping in further rationalizing the “free trade epidemic” of the 1860s and 1870s.

Keywords: International trade; Trade agreements; MFN; Cobden-Chevalier; Structural gravity models (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 N30 N70 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014498322000584
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Revisiting the 'Cobden-Chevalier network' trade and welfare effects (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:exehis:v:89:y:2023:i:c:s0014498322000584

DOI: 10.1016/j.eeh.2022.101480

Access Statistics for this article

Explorations in Economic History is currently edited by R.H. Steckel

More articles in Explorations in Economic History from Elsevier
Bibliographic data for series maintained by Catherine Liu ().