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Globalization and the Near East: A Study of Cotton Market Integration in Egypt and Western Anatolia

Published online by Cambridge University Press:  09 August 2013

Laura Panza
Laura Panza*
Affiliation:
McKenzie Postdoctoral Fellow University of Melbourne, School of Economics, Melbourne, 111 Barry St., 3010 Melbourne VIC, Australia. E-mail: lpanza@unimelb.edu.au.
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Abstract

The Near East underwent a process of integration with the global economy during the second half of the nineteenth century. This article explores one aspect of this process, examining the linkages established between the cotton industries in Egypt and Western Anatolia, and the international cotton market during the first wave of globalization. We undertake a quantitative exploration of the pattern of price transmission between the Near East and the international cotton markets over this period, connecting changes in the nature of spatial market integration to major economic and political developments.

Type
Articles
Information
The Journal of Economic History , Volume 73 , Issue 3 , September 2013 , pp. 847 - 872
Copyright
Copyright © The Economic History Association 2013 

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Footnotes

I wish to thank Sisira Jayasuriya, Nobuaki Yamashita, and Sandy Suardi for offering their guidance. In addition, I gratefully acknowledge the valuable comments and feedback received from Şevket Pamuk and two anonymous referees. I am also thankful to the participants of the international workshop on “Economic History of Globalization,” 20–21 October 2011, University of Leuven, Belgium as well as to the participants of the APEBH conference, 16–18 February 2012 ANU, Canberra, for their constructive advices. In particular, I thank Jeffrey Williamson, David Prentice, and Peter Solar for their helpful feedback and encouragement.

References

REFERENCES

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Clemente, Jesús, Montañés, Antonio, and Reyes, Marcelo. “Testing for a Unit Root in Variables with a Double Change in the Mean.” Economics Letters 59, no. 2 (1998): 175–82.CrossRefGoogle Scholar
Ejrnæs, Mette, and Persson, Karl Gunnar. “Market Integration and Transport Costs in France, 1825–1903: A Threshold Error Correction Approach to the Law of One Price.” Explorations in Economic History 37, no. 2 (2000): 149–73.CrossRefGoogle Scholar
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O'Rourke, Kevin H., and Williamson, Jeffrey G.. “Once More: When Did Globalization Begin?” European Review of Economic History 8, no. 1 (2004): 109–17.CrossRefGoogle Scholar
Ottoman Agricultural Statistics. “Osmanli Dönemi tarim istatistikleri 1909, 1913, 1914 Tarihi Istatistikler Dizisi.” Cilt 3. Tevfik Güran.” British Library, London, 1909, 1913, 1914.Google Scholar
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Owen, E. J. Roger. The Middle East in the World Economy. London: Methuen & Co. Ltd., 1981.Google Scholar
Özmucur, Süleyman, and Pamuk, Şevket. “Real Wages and Standards of Living in the Ottoman Empire, 1498–1914.” The Journal of Economic History 62, no. 2 (2002): 293–321.CrossRefGoogle Scholar
Özmucur, Süleyman, and Pamuk, Şevket. “Did European Commodity Prices Converge During 1500–1800?” In The New Comparative Economic History: Essays in Honour of Jeffrey G. Williamson, edited by Hatton, T. J., O'Rourke, K. H., and Taylor, A. M., 59–86. Cambridge, MA: MIT Press, 2007.CrossRefGoogle Scholar
Pamuk, Şevket.The Ottoman Empire and European Capitalism, 1820–1913. Cambridge: Cambridge University Press, 1987.Google Scholar
Pamuk, Şevket.A Monetary History of the Ottoman Empire. Cambridge: Cambridge University Press, 2000.Google Scholar
Pamuk, Şevket. “Prices in the Ottoman Empire, 1469–1914.” International Journal of Middle Eastern Studies 36, no. 3 (2004): 451–68.Google Scholar
Pesaran, M. Hashem, and Shin, Yongcheol. “An Autoregressive Distributed Lag Modeling Approach to Cointegration Analysis.” In Econometrics and Economic Theory in the Twentieth Century: The Ragnar Frisch Centennial Symposium, edited by Steinar, Strøm, 371–413. New York: Cambridge University Press, 1998.CrossRefGoogle Scholar
Pesaran, M. Hashem, Shin, Yongcheol, and Smith, Richard. “Bound Testing Approaches to the Analyses of Level Relationship.” Journal of Applied Econometrics 16, no. 3 (2001): 289–326.CrossRefGoogle Scholar
Quataert, Donald. Ottoman Reform and Agriculture in Anatolia, 1876–1908. Ann Arbor, MI: University Microfilms International, 1973.Google Scholar
Quataert, Donald. “A Provisional Report Concerning the Impact of European Capital on Ottoman Port Workers, 1880–1909.” In The Ottoman Empire and the World-Economy, edited by Inan, Huri Islamoglu, 300–08. Cambridge: Cambridge University Press, 1987.Google Scholar
Quataert, Donald. Ottoman Manufacturing in the Age of the Industrial Revolution. Cambridge: Cambridge University Press, 1993.Google Scholar
Quataert, Donald. “Proto-Industrialization and Industrialization and “Modernity in a Global Perspective.” In The Ashgate Companion in the History of Textile Workers, 1650–2000, edited by Van Voss, Lex Heerma, Hiemstra-Kuperus, Els, and Meerkerk, Elise van Nederveen, 577–96. Farnham, Surrey: Ashgate Publishing, 2010.Google Scholar
Richards, Alan. “Primitive Accumulation in Egypt, 1789–1882.” In The Ottoman Empire and the World-Economy, edited by Inan, Huri Islamoglu, 203–47. Cambridge: Cambridge University Press, 1987.Google Scholar
Schanz, Morritz. Cotton in Egypt and in the Anglo-Egyptian Sudan. Schevingen: German Colonial Economic Committee, 1913.CrossRefGoogle Scholar
Takayama, Takahashi, and Judge, George. Spatial and Temporal Price Allocation Models. Amsterdam: North-Holland Publishing Company, 1971.Google Scholar
Todd, John. The World's Cotton Crops. London: A. & C. Black, 1915.Google Scholar
Williamson, John. “Target Zones and the Management of the Dollar.” Brookings Papers on Economic Activity 1, no. 1 (1986): 165–74.CrossRefGoogle Scholar
Consular Reports of the British Foreign Office: FO78/602; 701; 750; 795; 832; 868; 905; 954; 1020; 1108; 1209; 1307; 1447; 1687, National Archives, London, 1845–1862.Google Scholar
Batista, J. Chiami, and Filho, da Silveira G. B.. “Trade Costs and Deviations from the Law of One Price” American Journal of Agricultural Economics 92, no. 4 (2010): 1011–23.CrossRefGoogle Scholar
Beckert, Sven. “Emancipation and Empire: Reconstructing the Worldwide Web of Cotton Production in the Age of the American Civil War.” The American Historical Review 109, no. 5 (2004): 1405–38.CrossRefGoogle Scholar
Brady, Eugene A. “A Reconsideration of the Lancashire Cotton Famine.” Agricultural History 37, no. 3 (1963): 156–62.Google Scholar
Chauduri, N. Kirti. “Foreign Trade and Balance of Payments.” In The Cambridge Economic History of India: Volume 2, c. 1751–c. 1970, edited by Kumar, Dharma and Desai, Meghnad, 804–77. Cambridge: Cambridge University Press, 1983.CrossRefGoogle Scholar
Ciliberto, Federico. “Were British Cotton Entrepreneurs Technologically Backward?” Explorations in Economic History 47, no. 4 (2010): pp. 487–504.CrossRefGoogle Scholar
Clemente, Jesús, Montañés, Antonio, and Reyes, Marcelo. “Testing for a Unit Root in Variables with a Double Change in the Mean.” Economics Letters 59, no. 2 (1998): 175–82.CrossRefGoogle Scholar
Ejrnæs, Mette, and Persson, Karl Gunnar. “Market Integration and Transport Costs in France, 1825–1903: A Threshold Error Correction Approach to the Law of One Price.” Explorations in Economic History 37, no. 2 (2000): 149–73.CrossRefGoogle Scholar
Paul, Fackler L., and Goodwin, Barry K.. “Spatial Price Analysis.” In Handbook of Agricultural Economics, edited by Gardner, Bruce L. and Rausser, Gordon C., 971–1024. Amsterdam: Elsevier, 2001.Google Scholar
Farnie, Douglas A.The English Cotton Industry and the World Market. Oxford: Clarendon Press, 1979.Google Scholar
Frangakis-Syrett, Elena “The Trade of Cotton and Cloth in Izmir: From the Second Half of the Eighteenth Century to the Early Nineteenth Century.” In Landholding and Commercial Agriculture in the Middle East, edited by Ç, Keyder and Tabak, F., 97–112. New York: State University of New York Press, 1991.Google Scholar
Goodwin, Barry K., and Grennes, Thomas J.. “Tsarist Russia and the World Wheat Market.” Explorations in Economic History 35, no. 4 (1998): 405–30.CrossRefGoogle Scholar
Hanlon, W. Walker. “Innovation and Industry Development: Lessons from the British Cotton Textile Industry During the U.S. Civil War.” Ph.D. diss., Columbia University, 2012.CrossRefGoogle Scholar
Hanson, R. John. Trade in Transition: Exports from the Third World, 1840–1900. New York: Academic Press, 1980.Google Scholar
Henderson, William Otto. The Lancashire Cotton Famine, 1861–1865. New York: A. M. Kelley, 1969.Google Scholar
Inalcik, Halil, and Quataert, Donald. An Economic and Social History of the Ottoman Empire. Cambridge: Cambridge University Press, 1994.Google Scholar
Inan, Huri Islamoglu, ed. The Ottoman Empire and the World-Economy. Cambridge: Cambridge University Press, 1987.Google Scholar
Isard, Peter. “How Far Can We Push the ‘Law of One Price'?” The American Economic Review 67, no. 5 (1977): 942–48.Google Scholar
Issawi, Charles. The Economic History of the Middle East, 1800–1914. Chicago: The University of Chicago Press, 1966.Google Scholar
Issawi, Charles. The Economic History of Turkey, 1800–1914. Chicago: The University of Chicago Press, 1980.Google Scholar
Jacks, David, O'Rourke, Kevin H., and Williamson, Jeffery G.. “Commodity Price Volatility and World Market Integration Since 1700.” Review of Economics and Statistics 93, no. 3 (2011): 800–13.CrossRefGoogle Scholar
Johnson, William H.Cotton and Its Production. London: Macmillan, 1926.Google Scholar
Kasaba, Reşat.The Ottoman Empire and the World Economy: The Nineteenth Century. New York: State University of New York Press, 1988.Google Scholar
Kurmu?, Orhan. “The Cotton Famine and Its Effects on the Ottoman Empire.” In The Ottoman Empire and the World-Economy, edited by Inan, Huri Islamoglu, 160–69. Cambridge: Cambridge University Press, 1987.Google Scholar
Leunig, Timothy “New Answers to Old Questions: Explaining the Slow Adoption of Ring Spinning in Lancashire, 1880–1913” The Journal of Economic History 61, no. 2 (2001): 439–66.CrossRefGoogle Scholar
Leybourne, Stephen J., and Newbold, Paul. “Spurious Rejections by Cointegration Tests Induced by Structural Breaks.” Applied Economics 35, no. 9 (2003): 1117–21.CrossRefGoogle Scholar
Marks, Daan. “Unity or Diversity? On the Integration and Efficiency of the Rice Markets in Indonesia, c. 1920–2006.” Explorations in Economic History 47, no. 3 (2009): 310–24.CrossRefGoogle Scholar
Mass, William, and Lazonick, William. “The British Cotton Industry and International Competitive Advantage: The State of the Debates” Business History 32, no. 4 (1990): 9–65.CrossRefGoogle Scholar
Sevinç, Mihci, and Mihci, Hakan. “Reflections on the Ottoman Raw Cotton Production and Export During the 1850–1913 Period.” Hacettepe University Journal of Economics and Administrative Sciences 20, no. 2 (2002): 43–72.Google Scholar
Brian, Mitchell R.. International Historical Statistics: The Americas, 1750–1993. New York: Stockton Press, 1993.Google Scholar
Brian, Mitchell R.. International Historical Statistics: Africa, Asia, and Oceania, 1750–1993. Basingstoke: Palgrave Macmillan, 2007.Google Scholar
Narayan, Kumar Paresh. “The Saving and Investment Nexus for China: Evidence from Cointegration Tests.” Applied Economics 37, no. 17 (2005): 1979–1990.CrossRefGoogle Scholar
Narayan, Kumar Paresh, and Smyth, Russell. “The Residential Demand for Electricity in Australia: An Application of the Bounds Testing Approach to Cointegration.” Energy Policy 33, no. 4 (2005): 467–74.CrossRefGoogle Scholar
O'Rourke, Kevin H., and Williamson, Jeffrey G.. “Once More: When Did Globalization Begin?” European Review of Economic History 8, no. 1 (2004): 109–17.CrossRefGoogle Scholar
Ottoman Agricultural Statistics. “Osmanli Dönemi tarim istatistikleri 1909, 1913, 1914 Tarihi Istatistikler Dizisi.” Cilt 3. Tevfik Güran.” British Library, London, 1909, 1913, 1914.Google Scholar
Owen, E. J. Roger. Cotton and the Egyptian Economy, 1820–1914: A Study in Trade and Development. Oxford: Clarendon Press, 1969.Google Scholar
Owen, E. J. Roger. The Middle East in the World Economy. London: Methuen & Co. Ltd., 1981.Google Scholar
Özmucur, Süleyman, and Pamuk, Şevket. “Real Wages and Standards of Living in the Ottoman Empire, 1498–1914.” The Journal of Economic History 62, no. 2 (2002): 293–321.CrossRefGoogle Scholar
Özmucur, Süleyman, and Pamuk, Şevket. “Did European Commodity Prices Converge During 1500–1800?” In The New Comparative Economic History: Essays in Honour of Jeffrey G. Williamson, edited by Hatton, T. J., O'Rourke, K. H., and Taylor, A. M., 59–86. Cambridge, MA: MIT Press, 2007.CrossRefGoogle Scholar
Pamuk, Şevket.The Ottoman Empire and European Capitalism, 1820–1913. Cambridge: Cambridge University Press, 1987.Google Scholar
Pamuk, Şevket.A Monetary History of the Ottoman Empire. Cambridge: Cambridge University Press, 2000.Google Scholar
Pamuk, Şevket. “Prices in the Ottoman Empire, 1469–1914.” International Journal of Middle Eastern Studies 36, no. 3 (2004): 451–68.Google Scholar
Pesaran, M. Hashem, and Shin, Yongcheol. “An Autoregressive Distributed Lag Modeling Approach to Cointegration Analysis.” In Econometrics and Economic Theory in the Twentieth Century: The Ragnar Frisch Centennial Symposium, edited by Steinar, Strøm, 371–413. New York: Cambridge University Press, 1998.CrossRefGoogle Scholar
Pesaran, M. Hashem, Shin, Yongcheol, and Smith, Richard. “Bound Testing Approaches to the Analyses of Level Relationship.” Journal of Applied Econometrics 16, no. 3 (2001): 289–326.CrossRefGoogle Scholar
Quataert, Donald. Ottoman Reform and Agriculture in Anatolia, 1876–1908. Ann Arbor, MI: University Microfilms International, 1973.Google Scholar
Quataert, Donald. “A Provisional Report Concerning the Impact of European Capital on Ottoman Port Workers, 1880–1909.” In The Ottoman Empire and the World-Economy, edited by Inan, Huri Islamoglu, 300–08. Cambridge: Cambridge University Press, 1987.Google Scholar
Quataert, Donald. Ottoman Manufacturing in the Age of the Industrial Revolution. Cambridge: Cambridge University Press, 1993.Google Scholar
Quataert, Donald. “Proto-Industrialization and Industrialization and “Modernity in a Global Perspective.” In The Ashgate Companion in the History of Textile Workers, 1650–2000, edited by Van Voss, Lex Heerma, Hiemstra-Kuperus, Els, and Meerkerk, Elise van Nederveen, 577–96. Farnham, Surrey: Ashgate Publishing, 2010.Google Scholar
Richards, Alan. “Primitive Accumulation in Egypt, 1789–1882.” In The Ottoman Empire and the World-Economy, edited by Inan, Huri Islamoglu, 203–47. Cambridge: Cambridge University Press, 1987.Google Scholar
Schanz, Morritz. Cotton in Egypt and in the Anglo-Egyptian Sudan. Schevingen: German Colonial Economic Committee, 1913.CrossRefGoogle Scholar
Takayama, Takahashi, and Judge, George. Spatial and Temporal Price Allocation Models. Amsterdam: North-Holland Publishing Company, 1971.Google Scholar
Todd, John. The World's Cotton Crops. London: A. & C. Black, 1915.Google Scholar
Williamson, John. “Target Zones and the Management of the Dollar.” Brookings Papers on Economic Activity 1, no. 1 (1986): 165–74.CrossRefGoogle Scholar