A tale of two globalizations: gains from trade and openness 1800-2010

Giovanni Federico and Antonio Tena Junguito
Authors registered in the RePEc Author Service: Antonio Tena-Junguito

No 11128, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper compares the wave of globalization before the outbreak of the Great Recession in 2007 with its alleged historical antecedent before the outbreak of World War One. We describe trends in trade and openness, estimate the gains from trade and investigate the proximate causes of the growth of openness. We argue that the conventional wisdom has to be revised. The first wave of globalization started around 1820 and culminated around 1870. In the next century, trade continued to grow, with the exception of the Great Depression, but openness and gains fluctuated widely. Growth resumed in the early 1970s. By 2007, the world was more open than a century earlier and its inhabitants gained from trade substantially more than their ancestors did. The current wave of globalization, in spite of some similarities with previous trends, has no historical antecedents.

Keywords: Trade; Openness; Welfare gains (search for similar items in EconPapers)
JEL-codes: F14 F43 N70 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-gro, nep-his and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: A tale of two globalizations: gains from trade and openness 1800–2010 (2017)
Working Paper: A tale of two globalizations: gains for trade and openness 1800-2010 (2016)
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