Globalization and Empire: Market Integration and International Trade among Canada, the US, and Britain, 1750–1870

Abstract

Abstract Wheat market integration between the US and the UK before the “first era of globalization” (in the second half of the nineteenth century) was frequently interrupted by policy and “exogenous” events such as wars. This paper adds Canada to this story by looking at trade and price data, as well as contemporary debates. This allows us to triangulate the role of policy and wars, since Canada as a small open economy was part of the British Empire. We find that, despite its privileged access to British markets, Canada faced similar barriers to the US, suggesting that membership of the British Empire provided only a modest benefit to trade. We also describe the limitations she faced accessing the US market, in particular after American independence.