Temporary Protection and Technology Adoption: Evidence from the Napoleonic Blockade
AbstractThis 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.
CitationJuhász, Réka. 2018. "Temporary Protection and Technology Adoption: Evidence from the Napoleonic Blockade." American Economic Review, 108 (11): 3339-76. DOI: 10.1257/aer.20151730
- F13 Trade Policy; International Trade Organizations
- L67 Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
- N43 Economic History: Government, War, Law, International Relations, and Regulation: Europe: Pre-1913
- N63 Economic History: Manufacturing and Construction: Europe: Pre-1913
- N73 Economic History: Transport, Trade, Energy, Technology, and Other Services: Europe: Pre-1913