Journal article
The evolution of ottoman-European market linkages, 1469-1914: Evidence from dynamic factor models
Zhuo Li, Laura Panza, Yong Song
EXPLORATIONS IN ECONOMIC HISTORY | ACADEMIC PRESS INC ELSEVIER SCIENCE | Published : 2019
Abstract
This paper exploits data on a set of traded goods to undertake the first comprehensive empirical analysis of market integration between the Ottoman Empire and Europe from 1469 to 1914. Computing dynamic factor models via Bayesian inference, we overcome such data constraints as missing observations and a small sample size. The results of this analysis suggest that there were persistent market linkages until the first half of the 19th century, followed by a decline in price convergence. We also find that the intensity of Ottoman–European conflict had a negative effect on integration, especially during the 1844–1914 period.
Grants
Awarded by Australian Research Council
Funding Acknowledgements
We acknowledge financial support from the Faculty of Business and Economics, University of Melbourne (Faculty Research Grant, 2017) and from the Australian Research Council (DE150100809). For helpful comments we thank participants at the Brown Bag, Department of Economics, University of Melbourne and at the Fourth EH-Clio Lab Conference, Institute de Economia of the Pontificia Universidad Catolica de Chile. We are grateful to Jeff Borland, Jeanne Lafortune, Jeffrey Williamson, three anonymous referees, and editor Kris Mitchener for useful suggestions that improved earlier versions of this paper as well as to Bob Allen and Sevket Pamuk for clarifications about the data. Finally, we thank Matt Damell for assistance with copy-editing. All remaining errors are our own.