When Britain Turned Inward: The Impact of Interwar British Protection

Alan de Bromhead · Alan Fernihough · Markus Lampe · Kevin O’Rourke

58 citations0/0 files storedAmerican Economic Review

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Global trade and economics Historical Economic and Social Studies Political and Economic history of UK and US

Abstract

International trade collapsed, and also became much less multilateral, during the 1930s. Previous studies, looking at aggregate trade flows, have argued that trade policies had relatively little to do with either phenomenon. Using a new dataset incorporating highly disaggregated information on the United Kingdom’s imports and trade policies, we find that while conventional wisdom is correct regarding the impact of trade policy on the total value of British imports, discriminatory trade policies can explain the majority of Britain’s shift toward Imperial imports in the 1930s. (JEL F13, F14, F54, N74)

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References

2006The Log of Gravity 2006Globalization and the Gains From Variety 2014Estimates of the Trade and Welfare Effects of NAFTA 2011Rethinking the Effect of Immigration on Wages 1973National Income, Expenditure and Output of the United Kingdom 1855-1965.1999Applied General Equilibrium Modeling with MPSGE as a GAMS Subsystem: An Overview of the Modeling Framework and Syntax 1995Trade blocs, currency blocs and the reorientation of world trade in the 1930s 2013How Important Is the New Goods Margin in International Trade?

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