EH.Net Abstracts in Economic History

World Before
1840: What Do They Tell Us about the Sources of Growth?

EHS Abstract Submission
(c) 1998 EH.Net
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Name:  Jeffrey G. Williamson
Email:  jwilliam at kuznets.fas.harvard.edu
Institution:  Harvard University

Co-author:

Title:  Real Wages and Relative Factor Prices in the Third World Before
1840: What Do They Tell Us about the Sources of Growth?

Internet Address of abstracted work:
http://www.economics.harvard.edu/~jwilliam

By mail:
216 Littauer Center
Harvard University
Cambridge, MA. 02138 USA

Language:  English

Abstract:
This paper uses a new pre-1940 Third World data base documenting real wages
and relative factor prices to explore their determinants. There are three
possibilities: external price shocks, factor endowment changes, and
technological change. While the paper lays out an explicit econometric
agenda for the future, it looks like external price shocks were doing most
of the work, and declining-transport-cost-induced commodity price
convergence in particular. Real wages in Asia, the Middle East and Latin
America never showed signs of much catching up with the European industrial
leaders prior to 1914, but at least they held their own. The ratio of wages
to land rents, on the other hand, declined up to World War I, and so did
the ratio of wages to GDP per capita. The trend reversed thereafter. These
relative factor price movements help sharpen our understanding of the
sources of growth (or lack of it) in Asia and Latin America prior to 1940.
They also offer strong hints about changes in income distribution there.

This the fourth in a series of four recent HIER working papers, the first
on the Mediterranean Basin, the second on Asia, the third on Latin America
and this comparative summary of all three regions. Each of the other three
papers contain an annual data base on wages, prices, real wages,
wage/rental ratios, and other factor prices for many countries starting
1820. The data base is always supported by detailed appendix material. The
first three papers are already on my web site; this one will be added soon.

Bibliography:  Williamson, Jeffrey G.  "Real Wages and Relative Factor
Prices in the Third World Before 1840: What Do They Tell Us about the
Sources of Growth?"  Harvard Institute of Economic Research Discussion
Paper No. 1855 (November 1998).

Subject:  D
Geographical Area:  0
Country/Region:
Time Period:  0
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