Replication data for: The Wind of Change: Maritime Technology, Trade, and Economic Development

Summary:  View help for Summary The 1870-1913 period marked the birth of the first era of trade globalization. How did this tremendous increase in trade affect economic development? This work isolates a causality channel by exploiting the fact that the introduction of the steamship in the shipping industry produced an asymmetric change in trade distances among countries. Before this invention, trade routes depended on wind patterns. The steamship reduced shipping costs and time in a disproportionate manner across countries and trade routes. Using this source of variation and novel data on shipping, trade, and development, I find that (i) the adoption of the steamship had a major impact on patterns of trade worldwide; (ii) only a small number of countries, characterized by more inclusive institutions, benefited from trade integration; and (iii) globalization was the major driver of the economic divergence between the rich and the poor portions of the world in the years 1850-1900.

JEL Classification:  View help for JEL Classification
      F14 Empirical Studies of Trade
      F43 Economic Growth of Open Economies
      F63 Economic Impacts of Globalization: Economic Development
      L92 Railroads and Other Surface Transportation
      N70 Economic History: Transport, International and Domestic Trade, Energy, Technology, and Other Services: General, International, or Comparative
      O33 Technological Change: Choices and Consequences; Diffusion Processes